Q1. What is Capital Expenditure? Ans :- Capital expenditure means the expenditure the benefit of which is not exhausted within the current year but is enjoyed over a long time period. Such expenditure is of non-recurring nature and results in acquisition of permanent assets.
Q2. What is Revenure Expenditure?
Ans:- Revenue expenditure means the expenditure the benefits of which is exhasted within the current year. Such expenditure is of a recurring nature and doesnot result in the acquisition of permanent assets.
The following types of expenses are included in revenue expenditure
(i) Expenses incurred for the day-to-day running of the business.
(ii) Expenses incurred for the upkeep of fixed assets.
(iii) Expenses incurred on purchase of stocks of materials and goods.
(iv) Depreciation on fixed assets
(v) Loss from sale of fixed assets.
(vi) Replacement of wornout parts of existing machines.
(vii) Interest on loan and interest on capital for the period after the asset is put to use.