Chapter 7 – Doctor Accounting
- July 5, 2019
- Posted by: SAA-GE Marcomms
- Category: Doctor Accounting
Do you know the difference between revenue expenditure and capital expenditure?
Today we will share with you on the difference between the two.
Watch Dr Accounting chapter 7 to learn more about the world of Accounting with us!
Welcome to Doctor Accounting chapter 7. In this series, I would like to share with you the difference between
Revenue Expenditure and Capital Expenditure. It is very important for any accountant to know the clear differences before you know the right treatment. Well, revenue expenditure is a day to day running expenses. Capital expenditure is for long term and is permanent and the amount is typically large.
While revenue expenditure will go into the training profit and loss account. Where else capital expenditure will go into the balance sheet.
The example of Revenue Expenditure will be rent, interest. Versus Capital Expenditure the example will be land and Vehicle.
In my chapter eight, I will share with you the difference between Assets and Liability, so stay tuned!