Difference Between Revenue & Capital Expenditure Give an
Example of each ?
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Answer Posted / h.r. sreepada bhagi
Revenue Expenditure - Amount of expense relating to a
particular Accounting/Financial year - Eg. Stationery
purchased, Staff Welfare Expenses, etc. These expenses will
be charged off in the Profit & Loss Account in the same year.
Capital Expenditure - Amount of money spent on acquiring an
asset - Eg. Purchase of Land, Furniture, Computer, etc.)
Since the benefit of these assets is spread over several
years, these expenditure will be charged off over the period
of the life of the asset (As per the method & rates
mentioned in the applicable Law in any country) in the name
of depreciation.
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