Expenditure is the amount of resources consumed.It is classified into capital expenditure and revenue expenditure.
CAPITAL EXPENDITURE:-
Expenditure incurred for deriving long-term benefits for the business is capital expenditure.Expenditure incurred for purchase of fixed assets such as plant&machinery,goodwill,patent etc. and expenditure incurred for raising long-term capital are examples of capital expenditure.
REVENUE EXPENDITURE:-
Expenditure incurred merely to maintain the business and to keep the assets in good working condition is termed as revenue expenditure.Payment of salaries and wages,rent,telephone charges ,depreciation etc are examples of such expenditure
CAPITAL EXPENDITURE:-
Expenditure incurred for deriving long-term benefits for the business is capital expenditure.Expenditure incurred for purchase of fixed assets such as plant&machinery,goodwill,patent etc. and expenditure incurred for raising long-term capital are examples of capital expenditure.
REVENUE EXPENDITURE:-
Expenditure incurred merely to maintain the business and to keep the assets in good working condition is termed as revenue expenditure.Payment of salaries and wages,rent,telephone charges ,depreciation etc are examples of such expenditure
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