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Diffirent betwen Capital Expendature & revenue expendature
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Answer Posted / pradnya
Capital expenditure is always recorded in Balance sheet
Asset side.This expenses is occurs in one time but the
benefit of this is for Long time may be more the 8-10 years.
This helps to increase the productivity of the business.
Eg.Purchase of machiery,Land,Building
Revenue Exp is always recorded in Profit and loss Account
Debit side. This expenses occurs day to day or weekly or
yearly basis. The benefits of this is not more than one year.
Eg. Salary,office exp, electricity charges etc.
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