banner_ad

Re: revenue expenditure and capital expenditure

others 746 views 1 replies

Friends i want what differencens arraises in determining the capital expenditure and revenue expenditure 

in accounts point of view and  income tax point of view..

friends althoug it is a silly question plz help..

Replies (1)

capital expenditure is an amount spent to acquire or improve a long-term asset such as equipment or buildings. Usually the cost is recorded in an account classified as Property, Plant and Equipment. The cost (except for the cost of land) will then be charged to depriciation expense over the useful life of the asset.The

following expenses will also  be regarded as Capital expenditure & to be capitalised in the cost of the Asset :- 

1) the expenditure due to which the life of the asset has been increased.

2) the expenditure due to which the productivity of the asset has been inceased

 

revenue expenditure is an amount that is expensed immediately & the benefit of such expenditure is limited to one financial year—thereby being matched with revenues of the current accounting period(Asper Matching Concept) . Routine repairs are revenue expenditures because they are charged directly to an account such as Repairs and Maintenance Expense. Even significant repairs that do not extend the life of the asset or do not improve the asset (the repairs merely return the asset back to its previous condition) are revenue expenditures.

 

thanku hopefully u will understand


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details