What is the difference between capital expenditure and revenue expenditure ?

 

Difference Between Capital Expenditure and Revenue Expenditure 

S.No Capital Expenditure Revenue Expenditure
1. It is the amount Spend on the more valuable goods or services which are used for a long period. For Example- Purchase of Building It is a routine expenditure incurred in the normal course of business. For Example- Tea Expense, Salary Expense
2. It is non-repeating It is repeating
3. It Produces long term benefit It is consumed with an accounting year

 

4. It is an item on the balance sheet It is shown in the profit and loss account

 

5. It is a real account

 

It is a nominal account

 

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We provide the best training and counseling for students from Class XI till MBA.

BPA Educators offers Basic and advance courses in Microsoft Excel, which helps you to keep the data of numbers and analyze them properly, according to the requirements and needs.

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