CBSE Class 11-commerce Answered
Difference between capital and revenue expenditure?
Asked by sntshtrk530 | 08 Aug, 2017, 05:38: PM
Expert Answer
| Basis | Capital Expenditure | Revenue Expenditure |
| Meaning |
Expenditure incurred to increase the
earning capacity of business.
|
Expenditure incurred to maintain the
earning capacity of business.
|
| Objective |
To acquire fixed assets for conduct of
business
|
To conduct day to day business activities |
| Benefit Period | Availed for more than a year | Availed for one year |
| Disclosure | Asset side of Balance Sheet | Debit side of Trading and P&L Account |
| Nature | Non-recurring Nature | Recurring Nature |
Answered by Tharageswari S | 09 Aug, 2017, 10:53: AM
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