| Difference | Capital Expense | Revenue Expense |
| 1. Meaning | The expense which is not made regularly and whose benefit is received for a long period of time, is known as ‘Capital expense’. | The expense which is made regularly and the benefit of which is received for a short time period is known as ‘Revenue expense’. |
| 2. Illustrations | The expenditure which results in acquisition of an asset is included in capital expenditure. For e.g., expenses like legal expenses, establishment expense incurred for purchase of building, land, furniture. | The day-to-day expenses of the business like salary, rent, postage and telegram, stationery expenses, interest, etc. are included in revenue expenditure. |
| 3. Presentation in accounts | Capital expense is shown on the asset side of Balance Sheet. | Revenue expense is shown on the debit side of the Income-Expenditure Account. |
| 4. Depreciation | At the end of the year, depreciation is calculated on the capital expense. | At the end of the year, depreciation is not calculated on the revenue expense. |
| 5. Regularly | Generally, capital expense is made only once. | Generally, revenue expense is made regularly and repeatedly. |
| 6. To close the account | At the end of the year capital accounts are not closed but their balances are carried forward to the next year. | At the end of the year revenue accounts are closed and so there is no question of carrying their balances forward to the next year. |
| 7. Received information | Capital expense shows the financial position of the institute. | Revenue expense shows the profit or loss of the institute. |
| 8. Objective | The objective of the capital expense is either to acquire fixed assets and with their help to create facilities to generate income. | The objective of tire revenue expense is to run activities of the concern. |
