0| Capital Expenditure | Revenue Expenditure |
| It is incurred for acquiring Fixed Assets | It is incurred for running productivity or earning capacity of business |
| It results in increase the value of Fixed Assets | There is no increase in value of Fixed assets |
| They increase the earning capacity of business | They are incurred to maintain the earning capacity of business |
| Benefit of such expenditure extends for more than one year | Benefits of expenditure expires in the current accounting (same year) period itself |
| They are displayed in Balance Sheet | They are displayed in P & L a/c |
| Basically they are non-recurring nature | Basically they are recurring nature |
| Example: Purchase of land, building etc. | Example: Painting building, repairs etc. |
