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Capital and Revenue expenditure ( 資本性支出　／　收益性支出）

Capital and Revenue expenditure ( 資本性支出　／　收益性支出）. Capital and revenue expenditure ( 資本性支出　／　收益性支出） Capital expenditure Buy fixed assets or Add to the value of an existing fixed asset Revenue expenditure Running the business on a day-to-day basis. Capital Expenditure. Spent on :

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Capital and Revenue expenditure ( 資本性支出　／　收益性支出）

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  1. Capital and Revenue expenditure(資本性支出　／　收益性支出）

  2. Capital and revenue expenditure (資本性支出　／　收益性支出） Capital expenditure Buy fixed assets or Add to the value of an existing fixed asset Revenue expenditure Running the business on a day-to-day basis.

  3. Capital Expenditure • Spent on : • Acquiring fixed assets. • Bringing them into the frim. • Legal costs of buying buildings. • Carriage inwards on machinery bought. • Any other cost needed to get the fixed asset ready for use.

  4. Revenue expenditure • e.g. • To buy a motor van is capital expenditure. • To pay for petrol to use in the motor van is revenue expenditure.

  5. Exhibit • Buying motor van Capital • Repairs to motor van Revenue • Putting extra headlights on motor van Capital • Electricity costs of using machinery Revenue • Painting outside of new building Capital • We spent $1,500 on machinery.$1,000 was for an item added to the machine:$500 for repairs. Capital $1,000 • Revenue $500 • Three years later-repainting outside of building Revenue

  6. Joint expenditure • A builder was engaged to tackle some work on your premises, the total bill being for $3,000. If one-third of this was for repair work and two thirds for improvements. • $1,000 should be charged in the profit and loss account as revenue expenditure, and $2,000 identified as capital expenditure and, therefore, added to the value of premises and shown as such in the balance sheet.

  7. Purchase of an extra motor van • Capital • Cost of rebuilding warehouse wall which had fallen down. • Revenue • Building extension to the warehouse. • Capital • Carriage costs on bricks for new warehouse extension. • Capital • Carriage cost on purchases. • Revenue

  8. EXERCISES

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