Account Heads for Restaurant

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This discussion clarifies the classification of various restaurant expenses as either capital or revenue expenditure. Items like wall painting, ceiling work, tiles, CCTV installation, and POS software setup are generally considered capital expenditures, impacting the balance sheet. Cooking utensils, serving utensils, and staff uniforms are typically treated as equipment or revenue expenses, affecting the profit and loss account. The distinction is crucial for accurate financial reporting, and seeking professional accounting advice is recommended.

As Nau

As Nau (Querist)
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19 May 2020 Wall Painting = Capital Expenditure?
Ceiling = Capital Exp?
Tile = Capital Exp?
CCTV Installation = Capital Exp / Fittings?
Network Cable = Capital Exp?

Cooking Utensils, Serving Utensils = Equipments?

Staff Uniform = ?

POS Software Setup = Capital Exp?

c.bakshi

c.bakshi (Expert)
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19 May 2020 yes 1,2,3, 8
cctv installation & network cable :furniture and fitting
rest all other revenue expanditure

As Nau

As Nau (Querist)
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20 May 2020 Is a revenue expenditure the same as a capital expenditure?

c.bakshi

c.bakshi (Expert)
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21 May 2020 not at all. Revenue exp. is a entered into the profit and loss acc and where capital exp. is a part of balance sheet. i suggest you these are technical points and are very important for formation of financial statements. take a help of professional while preparing your books of accounts

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