revenue,as its done on regular course of business

Revenue Expenditure

Revenue Expenditure

The purpose of determining this figure is to allow businesses to extend the overall cost of a purchase across several years, in order to express its overall value as opposed to just claiming it as a one-time expense.

ACCORDING TO ME..........

DEPRECIATION ON FIXED ASSET IS REVENUE EXPENDITURE.

THIS IS BECAUSE THE FIXED ASSETS WHICH WE PURCHASE IS A CAPITAL ASSET AND FOR ANY BUSINESS IT IS A CAPITAL EXPENDITURE.THE BENIFIT OF THE FIXED ASSET IS NOT RESTRICTED TO THAT PARTICULAR YEAR ONLY IN WHICH WE PURCHASE  FIXIED ASSET. ITS BENIFITS IS ENJOYED BY THE BUSINESS FOR MANY LONG YEARS AND ALSO SUCH FIXED ASSETS ARE USED TO  RUN T HE OPERATIONS OF BUSINESS, DEPRECIATION ON FIXED ASSET IS THAT PART OF   FIXED ASSET WHICH BUSINESS HAS ENJOYED IN THAT YE AR . THE PRICE OF FIXED ASSET IS DISTRIBUTED OVER THE NUMBER OF YEARS ACCORDING TO THE BENIFITS ESTIMATED BY THAT ASSET . ION OF THE DEPRECIATION IS NOTHING BUT THE ESTMATION OF BENIFIT FOR THAT PARTICULAR YEAR. WE SIMPLY AMORTISED OUR CAPITALA EXPENDITURE  OVER SEVERAL NUMBERS OF YEARS  ACCORDING TO ITS BENIFITS

REVENUE EXPENDITURE

Capital Expenditure results in creation/acquisition of Fixed Asset. Depreciation is the process of reducing the value of fixed assets in the books over the period of its life (in any prescribed method and rates prescribed by Companies Act or any other applicable law) by charging to the profit & Loss A/c.
Its debited to the Profit & Loss A/c like any other Revenue
Expenditure.

thanku alll...... for ur kind  replyyy.....:)

Hey your doubt is clear only because of CCI

Originally posted by : Mr. Ashwini Rohilla
	Hey your doubt is clear only because of CCI

tanks alottt.... :)

A revenue expenditure is an amount that is expensed in the current period—thereby being matched with revenues of the current accounting period

Depreciation on fixed asset is an example of revenue expenditure.

The asset purchased gives benefit throughout its useful life.

So the wear and tear on the asset  should be accounted for, proportionately throughout it's useful life.

Charging depreciation is also based on the matching principle.

Hello ,
This is Formulae derived by Ca.Bishwa nath sah for calculating the time-confusing Log or Natural logarithm.Presently , I am teaching SFM/MAFA –(The coaching centre named REAL DESTINATION ACADEMY ,Shakarpur,New delhi).
By Ca.Bishwa Nath Sah
LOG/Ln (X) = [19 TIMES√X MINUS 1]* 227695/524290
Where Log means Logarithm and Ln m...

Revenue........