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
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)
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.
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