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What is difference between capital expenditure and revenue expenditure?

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تم إضافة السؤال من قبل suman korrapati , Executive Accounts , gkc projects limited
تاريخ النشر: 2013/07/30
Ahmed Dawoud
من قبل Ahmed Dawoud , Senior Accountant , HI PROF General Trading & Contracting

Capital expenditure is paid to increase the production capacity of the facility and to increase revenue in the long term.An example of this: machine maintenance to produce20000 units instead of10000 units The revenue expenditure is any money paid for short-term income as rent shop for sale products

Biswa Bhusan Malla
من قبل Biswa Bhusan Malla , officer in Accounts & Administration department , CitiFinancial Consumer Finance India Ltd

Capital expenditure is a long term investment to establish a company, where as revenue expenditure is an amount that is expensed immediately.

SAHL HIJAZI
من قبل SAHL HIJAZI , Purchasing Manager , BINZAFRAH GROUP

Revenue expense are costs in the for day to day running of the business for example servicing a machine, spare parts etc.
Revenue expenditure is normally charged against profit in the Income statement .
Capital expenditure is on an item that will help generate profits over the longer term (12 months or more)

Neelakandan Natarajaiyer
من قبل Neelakandan Natarajaiyer , Senoir.Officer- Finance and Accounts , Anval Valves Pvt Ltd.,

Any expenses inucurred for the purpose of buying or installation or any kind of nature for the assets  can be booked in the acccounts book as capitalisation.
Then only the true value of the assets can be arrived.
In the case of revenue exp which are not for the assets and incurred for operational expenses is called revenue exp.
  commend and feedback please.
 

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