Capital Expenditure And Revenue Expenditure

Table of Contents

Capital expenditure:

Capital expenditure mean all such expenditure which are incurred on purchase on fixed asset, there extension or increase in their earning capacity are called as capital expenditure.

The following expenses are considered as capital expenditure:

– Expenditure incurred on purchase, construction and expansion of fixed assets(tangible and intangible)

– Expenses on legal formalities such as brokerage, commission, stamp duty etc. on purchase of fixed assets.

– Expenses incurred on installation of fixed assets.

– Travelling expenses for the purchase of fixed assets.

– Expenses incurred on bringing the the acids to the place of business.

– Insurance expenses

– Architect fee

– repair and renewal of used, old or second hand property which will increase the     earning capacity.

 

Revenue expenditure:

Revenue expenditure means the expenses which provide benefits in one accounting. only is revenue expenditure it does not increase the earning capacity calling expenditure covered under revenue expenditure :

– Purchase good are Raw-material.

– payment of wages, salary, rent, production and administration expenses.

– Expenses incurred on repairs renewals and maintenance of fixed assets.

– Selling and distribution expenses, advertisement expenses, packaging

  expenses, commission etc.

– Depreciation on fixed assets.

– Interest on loan etc.

                                                                                           – Nehal Sharma

Share with your friends

Share on facebook
Facebook
Share on twitter
Twitter
Share on whatsapp
WhatsApp
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

This Post Has 5 Comments

  1. kamlesh salvi

    You are really writing knowledge able blogs
    keep it up madam
    & thanks to Anil Computers Also

    1. Swati

      Really helpful in recalling the basics

  2. varsha kumawat

    nice one

  3. Shraddha

    Good

  4. Manish borana

    Helping note

Leave a Reply

Anil Computers

Anil Computers

Best computer Institute in Udaipur

Quiz_Anilcomputers1

सर्टिफिकेट  पाने के लिए अपने रिजल्ट का Screen shot नीचे दिये गये मोबाइल नम्बर पर send करें। साथ ही एक बार काॅल जरूर कर लेवें।


Notice: Undefined index: force_wall in /home/waapsols/public_html/anilcomputersudaipur/wp-content/plugins/ocean-extra/includes/widgets/facebook.php on line 155