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What is capital expenditure and revenue …

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What is capital expenditure and revenue expenditure

Posted by Abhishek Dora 7 years, 2 months ago

CBSE > Class 11 > Accountancy

1 answers

Manish Gandhi 7 years, 2 months ago

An expenditure which neither creates assets nor reduces liability is called Revenue Expenditure, e.g., salaries of employees, interest payment on past debt, subsidies, pension, etc.

An expenditure which either creates an asset (e.g., school building) or reduces liability (e.g., repayment of loan) is called capital expenditure.

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CBSE > Class 11 > Accountancy