Accountancy, asked by jeenatparveen2005, 1 month ago

give the two example of revenue expenditure : (a) salary adn rent (b) bank loan and rent (c) good will and patents (d) income and expense

Answers

Answered by TRISHNADEVI

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The expenditures which are related to the day to day operation of a business, which are recurring in nature are known as Revenue Expenditure.

✠ In Salary and Rent, both are the expenditure related to day to day operation of business.

✠ In Bank loan and Rent, bank loan is a liability, though rent is a expenditure.

✠ In Income and Expense, Income is a revenue, not a expenditure, though expense is a expenditure.

Hence, two examples of Revenue Expenditures are Salary and Rent.

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✎ Revenue Expenditure is a kind of expenditure which is incurred to meet the day to day expenses of the business concern.

✎ Revenue Expenditure is incurred in the normal course of business and benefit from this type of expenditure can be derived in one year of incurring the expenditure.

✎ Revenue Expenditures are shown on the debit side of the Trading and Profit and Loss Account.

✎ Revenue Expenditures are incurred for increasing the earning capacity and maintaining the current level of the business.

✎ Revenue Expenditures are recurring in nature and related to general i.e., day-to-day operation of the business.

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