more help plz

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:23AM in AAT student discussion
Can anyone define:<BR><BR>- A Capital expenditure account<BR><BR>- A Revenue expenditure account<BR><BR>Thanks very much

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    more help plz

    Hi<BR><BR>A Capital expenditure is for purchases of goods expected to last for longer than a year, ie premises/vehicles etc, revenue expenditure is the day-to-day costs of running a business, ie wages, heat/light, rent etc. In this instance the company has 2 accounts set up to record the individual items that make up capital or revenue.<BR><BR>Tracy

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