Revenue Expenditure:
It is incurred for day to day running of the business.
| Capital Expenditure | Revenue Expenditure |
| It increases the earning capacity of business. | It maintains the earning capacity of business. |
| It is incurred to acquired fixed assets for operation of the business. | It is incurred to conduct day to day business. |
| It is recurring in nature. | It is non-recurring in nature. |
| It benefits more than one accounting year. | It normally benefits for one accounting year. |
| It is shown in Balance Sheet. | It is shown in Trading and Profit & Loss Account. |
