What is Capital expenditure and Revenue Expenditure?

Capital expenditures enhance the useful life of a fixed asset.They are deducted from cost of an Asset Whereas revenue expenditures are charged to the repairs and maintenance expenses in P & L A/C.Examples of revenue expenses such as Paint of building etc.

Capital expenditures are for fixed assets, which are expected to be productive assets for a long period of time. Revenue expenditures are for costs that are related to specific revenue transactions or operating periods, such as the cost of goods sold or repairs and maintenance expense.

Capital expenditure is the expenses that will consumed and useful for more than one year or operating cycle which is longer . example fixed assets .

Revenue expenditure is the expenses related to operating cycle ( we must to spent to operate the factory or company)

like rent ,employees salary and maintenance