Accounting Treatment of Expenditures
Describe the term Accounting Treatment of Expenditures? Why it is used.
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Accounting Treatment of Expenditures: All revenue expenses are illustrated in the debit side of gain and loss account. Whenever new revenue expenditure is paid, its entry is passed into journal by debit these expenses and credits either bank or cash account.
All capital expenses are illustrated in the Asset side of the company's balance sheet.
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