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Capital expenditure
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Revenue expenditure
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1) It is an expenditure which is incurred in order to increase the earning capacity of the business.
2) The amount that are received by way of sale of fixed assets.
3) This is non recurring in nature.
4) E.g.: Sale of plant, machine, building, furniture.
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1) It is an expenditure which is incurred in order to maintain the day to day affairs of the business.
2) The amount which are received due to the sale of goods.
3) Recurring in nature.
4) E.g.: Sale of goods, interest recurred are examples.
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