Examples of Revenue Expenditure and Capital Expenditures



Following are the examples of revenue expenditure.
  1. Wages or salaries paid to factory workers.
  2. Machine Oil to lubricate.
  3. Electricity or Power required to run machinery or motor.
  4. Expenditure incurred in the ordinary conduct and administration of business, i.e. rent, , carriage on saleable goods, salaries, wages manufacturing expenses, commission, legal expenses, insurance, advertisement, free samples, postage, printing charges etc.
  5. Repair and maintenance expenses incurred on fixed assets.
  6. Cost of saleable goods.
  7. Depreciation of fixed assets used in the business.
  8. Interest on borrowed money.
  9. Freight, cartage, octroi duty, transportation, insurance paid on saleable goods.
  10. Petrol or diesel consumed in motor vehicles.
  11. Service charges to motor vehicles.
  12. Bad debts. 

The following are the capital expenditures Examples:
  • Cost of goodwill.
  • Cost of freehold land and building and the legal charges incurred in this connection.
  • Cost of lease.
  • Cost of machinery, plants, tools, fixtures, etc.
  • Cost of trade marks, patents, copy rights, designs, etc.
  • Cost of car, lorry etc.
  • Cost of installation of lights and fans.
  • Cost of any other assets acquired by way of equipment.
  • Erection cost of plant and machinery.
  • Cost of addition to existing assets.
  • Structural improvements and alteration in the existing assets.
  • Expenses for developments in case of mines and plantations.
  • Expenses for administration incurred during construction and equipment of any industrial enterprise.
  • Expenses incurred in experimenting which finally result in the acquisition of a patent or other rights.

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2 Responses to Examples of Revenue Expenditure and Capital Expenditures

  1. weather domain registration charges treated as revenue expenditure or not??

    ReplyDelete
  2. what is the nature of purchase of staff uniform? Is it Revenue or Expenditure?

    ReplyDelete

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