Revenue Expenditure :

Revenue expenditures consist of those expenditures, which are incurred in the normal course of business. They are incurred in order to maintain the existing earning capacity of the business. It helps in the upkeep of fixed assets. Generally it is recurring in nature. Characteristics

i. It helps in maintaining the earning capacity of the business concern.

ii. It is recurring in nature.

Examples

i. Cost of goods purchased for resale.

ii. Office and administrative expenses.

iii. Selling and distribution expenses.

iv. Depreciation of fixed assets, interest on borrowings etc.

v. Repairs, renewals, etc.