Revenue Expenditure Meaning In Tamil
The revenue expenditures take place after a fixed asset had been put into service and simply keeps the asset in working order.
Revenue expenditure meaning in tamil. Definition of expenditure in the online tamil dictionary. Tamil words for expenditure include ச லவ and ச லவ னம. Meaning of revenue expenditure. Revenue expenditures are often discussed in the context of fixed assets.
In this video we explain about what is capital revenue expenditure receipts in tamil. Information about revenue in the free online tamil dictionary. Which are incurred for meeting day today requirements of a business and the. Tamil translations of expenditure.
All the expenditures which are incurred in the day to day conduct and administration of a business and the effect of which is completely exhausted within the current accounting year are known as revenue expenditures these expenditures are recurring by nature i e. Revenue expenditure refers to those expenditures which are incurred during normal business operation by the company benefit of which will be received in the same period and the example of which includes rent expenses utility expenses salary expenses insurance expenses commission expenses manufacturing expenses legal expenses postage and printing expenses. Furthermore as per the matching principle the expense should be matched with the revenue earned during the period to be regarded as revenue expenditure.
The most important difference between capital expenditure and revenue expenditure is that the former is aimed at improving overall earning capacity of the concern whereas the latter tries to maintain the earning capacity. Definition of revenue in the online tamil dictionary. It is chapter 1 unit 4 of ca foundation accounts class series video. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.
If the expenses made by the firm helps in the generation of revenue for the current accounting period it is considered as an operational expense. Conversely revenue expenditure implies the routine expenditure that is incurred in the day to day business activities.