Re: revenue expenditure and capital expenditure

A 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

A 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