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what is the difference between capital and revenue
expenditure
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Answer Posted / yash mahendru
Treating an expense as Capital or Revenue expenditure is
depandant on the nature, type,period and benefits derived
from that expenditure.
If the expenditure incurred improves the effeciency of the
assets etc; it will be treated as Capital Expenditure.Any
expenditure incurred on the purchase of the assets is also
a Capital expenditure.
On the other hand, a revenue expenditure is the expenditure
incurred on rotine basis which does not enhance the
effeciency of the asset. example, general repair, rent
etc.
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