Compare and contrast possessions expenditure and revenue expenditure next to a relevant examples.?
Answers:
Capital expenditure is items purchased that enjoy an expected usefulness for more than 1 year eg, buildings, motor vehicle, plant and machinery. These will be written stale within the accounts over various years eg saloon costing 10 k write rotten over 5 years so will depreciate by 2k per year (straight queue basis) or you can depreciate at read aloud 25% per year so 2.5k surrounded by year 1, 1875 surrounded by year 2 etc(written down value).
Revenue expenditure is items that are used that year, eg materials, expenses etc. These will show on your profit and loss accout, wherewithal expenditure go on the stability sheet.