Expenditure and Income
Expenditure and income groups can be divided down lit.
Investments
Investment spending, resulting from the acquisition of fixed assets, or an important part of their earning capacity.
• Investments are not recorded as an expense in the profit and loss account, while the depreciation is usually to pay for investments gradually overtime.
• Investments in fixed assets is that an asset in the balance sheet of the company.
Revenue Expenditure
Revenue expenditure is incurred for one of the following reasons.
• For the purpose of trading in the company.
• In order to maintain the earning capacity of current assets.
Income from capital
Capital income is the proceeds from the sale of non-commercial. Gains or losses from sale of fixed assets in the profit and loss account of the Company for the accounting period, included in which the sale takes place.
Median Income
Median income is the income from the following sources.
• The sale of asset trading.
• Interest and dividends received from investments of businesses.
The categorization of capital and revenue items not mentioned above, to repay raising additional capital by the owners of the company or the court, and the loans.
Average results of the spending on goods and services
BE is used in full in the period in which they were acquired, and therefore a cost or expense in the profit and loss account business.
Results of current assets at the end of the accounting period, as the goods or services are not consumed or used. The current assets would be shown on the balance sheet and no costs or expenses in the trading, profit and loss account.
