Question

what is revenue expenditure? explain with example​

Answer 1

Answer:

Any expense that recurs consistently over a given time is a revenue expense. For example, any maintenance costs to a building owned by your company are revenue expenditures.

Answer 2

ANSWER :

❒ Revenue Expenditure :-

• ⟴ The expenditure incurred to meet the day to day expenses of the concern is called Revenue Expenditure. It is incurred in the normal course of business. The benefit of revenue expenditure is derived in the year of incurring the expenditure. These expenditures are incurred to maintain the earning capacity of existing assets and are recurring in nature. These expenditures are required to be incurred every year for earning revenue.

• ⟴ Revenue Expenditures are of routine nature. These are shown at the debit side of the Trading and Profit and Loss Account

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❒ Examples of Revenue Expenditure :-

• ⟴ Expenses on repairs, renewal, replacements for maintaining the existing fixed assets.

• ⟴ Purchase of goods for resale and stores for consumption such as bar materials, foods, medicines etc.

• ⟴ Salaries, wages, rents, taxes, light charges, audit fees etc.

• ⟴ Depreciation on fixed assets, interest on loan and miscellaneous expenses etc.