Revenue Expenditure:
Definition:
Day to day Expenditures which are incurred for operating a business or a establishment for which effect which is completely exhausted within the current financial year are known as "revenue expenditures". These expenditures are recurring by nature such as Purchase of goods, salaries paid, postage and telegrams, rent paid, duties paid, traveling expenses, local conveyance, printing and stationery purchased, wages paid, refreshment expenses, telephone expenses etc.
This expenditures are incurred on goods or services which are useful to the business or establishment but are used within or below than a year.
Revenue expenditure also includes for the expenditure incurred for the purchase of raw material and inventory items required for manufacturing goods and the expenditure incurred to maintaining existing fixed assets to keep proper working conditions i.e. repair of machinery, building maintenance, furniture and fixture repairing, lab equipment maintenance etc.
Instances:
Following are the examples of revenue expenditures;
Salary paid to emplyees.
Wage paid to factory labour.
Fuel and lubricant.
Electricity Charges.
Insurance for immovable property.
Insurane for employees.
Depreciation on fixed assets used in the business.
Interest on loan
Freight charges.
Transportation charges.
Bad debts.
Maintenance of office car.
Medical expenses etc.
Definition:
Day to day Expenditures which are incurred for operating a business or a establishment for which effect which is completely exhausted within the current financial year are known as "revenue expenditures". These expenditures are recurring by nature such as Purchase of goods, salaries paid, postage and telegrams, rent paid, duties paid, traveling expenses, local conveyance, printing and stationery purchased, wages paid, refreshment expenses, telephone expenses etc.
This expenditures are incurred on goods or services which are useful to the business or establishment but are used within or below than a year.
Revenue expenditure also includes for the expenditure incurred for the purchase of raw material and inventory items required for manufacturing goods and the expenditure incurred to maintaining existing fixed assets to keep proper working conditions i.e. repair of machinery, building maintenance, furniture and fixture repairing, lab equipment maintenance etc.
Instances:
Following are the examples of revenue expenditures;
Salary paid to emplyees.
Wage paid to factory labour.
Fuel and lubricant.
Electricity Charges.
Insurance for immovable property.
Insurane for employees.
Depreciation on fixed assets used in the business.
Interest on loan
Freight charges.
Transportation charges.
Bad debts.
Maintenance of office car.
Medical expenses etc.
