A capital expenditure
1.It is an amount spent to acquire or improve a long-term asset such as equipment or buildings. Usually the cost is recorded in an account classified as Property, Plant and Equipment.
2.It is an expenditure which results in the acquisition of non-current asset or improvement in their earning capacity.
3.The total amount of capital expenditure is not deducted from the income when calculating profit for the year.
4.Capital expenditure brings benefit to the business over more than one accounting period.
*The better example of capital expenditure
1.Installation cost
2.Delivery cost
3.employee training cost
4.Improvement cost
5.Legal fees/solicitor fees to acquire non- asset
6.Carriage cost paid by purchaser
7.Customs duty
A revenue expenditure
1.It is an amount that is expensed immediately—thereby being matched with revenues of the current accounting period.
2. A revenue expenditure is a cost that is charged to expense as soon as the cost is incurred.
3.It is also incurred to maintain existing earning capacity of non-current asset
*The better example of revenue expenditure
1.Repair cost on non current asset
2. Maintenance cost
3.Wages of machine operator
4.Repainting cost
5.Material used to clean office building
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