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What is revenue expenditure?

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Revenue expenditures are small expenditures which are related to day to day business that could be incurred direct or indirect to earn revenue. Hence, they are always shown in profit and loss account unlike capital expenditure which are adjusted/added to the cost of asset. Eg. Of revenue expenditures...
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Revenue expenditures are small expenditures which are related to day to day business that could be incurred direct or indirect to earn revenue. Hence, they are always shown in profit and loss account unlike capital expenditure which are adjusted/added to the cost of asset. Eg. Of revenue expenditures are salaries of the staff, stationery/administration expenses, depreciation, repairs etc read less
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Revenue expenditure is the expenditure related to Normal course of the business and the benefit from that expenditure can be derived only in one accounting period. For example salaries,commission etc.Capital expenditure means that expenditure which gives you benefit over multiple accounting period. For...
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Revenue expenditure is the expenditure related to Normal course of the business and the benefit from that expenditure can be derived only in one accounting period. For example salaries,commission etc.Capital expenditure means that expenditure which gives you benefit over multiple accounting period. For example purchase of assets. read less
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Revenue Expenditures are incurred during the ordinary course of business for carrying out usual operational activities. And no future economic benefits are related to these expenditures. For Example: With the event of Purchasing one Machine, future economic benefits are related to this event. Because...
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Revenue Expenditures are incurred during the ordinary course of business for carrying out usual operational activities. And no future economic benefits are related to these expenditures. For Example: With the event of Purchasing one Machine, future economic benefits are related to this event. Because Business must have concern to manufacture the products using the machine for more than one year. Therefore, purchasing machine is not revenue expenditure, this is the capital expenditure. However, payment for factory wages, printing and stationary expenses, purchasing raw material are the revenue expenditures. Because the economic benefits will not be derived in future, the economic benefits derived are for particular financial year only. Capital Expenditure are always shown in the balance sheet at asset side., however revenue expenditure are treated as an expense item in Profit and Loss Account. read less
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Commerce/ Ensglish Speaking Expert

As expenditure which is not a capital expenditure is a revenue expenditure i.e any routine expenditure for day to day expenses is a revenue expenditure. Few examples are printing and stationery, electricity etc
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Chartered Accountants with 5 years teaching experience.

Revenue expenditure is expenditure is related to Maintained capacity , normally related to within 1 year ( Example Repairing M Mon Machinery. Capital expenditure is Improved efficiency , Normally usage More than one year ( Example Purchased Machinery.
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Revenue expenditures include the ordinary repair and maintenance costs that are necessary to keep the asset in working order without substantially improving or extending the useful life of the asset. Revenue expenses related to existing assets include repairs and regular maintenance as well as repainting...
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Revenue expenditures include the ordinary repair and maintenance costs that are necessary to keep the asset in working order without substantially improving or extending the useful life of the asset. Revenue expenses related to existing assets include repairs and regular maintenance as well as repainting and renewal expenses. read less
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Capital expenditures are those expenditures which enhance the capacity of the asset beyond its standard. Here the standard means the orignal capacity of the asset when you bought it. For example if you purchase an inverter before 3 yr embeded battery of say 200 MAH.and now if you spent Rs.20000 to purchase...
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Capital expenditures are those expenditures which enhance the capacity of the asset beyond its standard. Here the standard means the orignal capacity of the asset when you bought it. For example if you purchase an inverter before 3 yr embeded battery of say 200 MAH.and now if you spent Rs.20000 to purchase a new battery for such inverter of same capacity then here you are not enhancing the capacity of such inverter beyond the standard.however if you bought a battery of say 250 MAH then it will lead to enhancment of capacity beyond standard. And all of such expenditure including freight and installation charges if any should be capitalise. If an expense did not enhance the capacity or is not providing benefits of enduring nature then such expense should be treated as Revenue expenditure. read less
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