Revenue Expenditures Are Recorded With A Debit To

The term debit revenue refers to the act of posting a debit to a stream of revenue.

Revenue expenditures are recorded with a debit to. Revenue expenditures are expensed as a debit to a repairs and maintenance expense account. Revenue expenditures are recorded in the a. 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. Usually the capital expenditure is entered in an account as property or plant and equipment.

This is also called a contra account the opposite of a standard account debit and credit accounts. The similarities between the two expenditures are their purpose to improve or maintain an asset for increase of value. All of the above. The amount of the capital expenditure will be recorded as an asset and will then be moved to the income statement as depreciation expense over the years of the asset s useful life example of revenue expenditure.

Profit loss account. The payments excluding land cost are charged as a depreciation expense over its useful life. Let s assume that a company made a capital expenditure of 100 000 to install a high efficiency machine. Which are incurred for meeting day today requirements of a business and the.