question archive I am required to classified those expenses into capital and non capital expenses to elaborate business activity statement for a hypothetical company in Victoria, Australia
I am required to classified those expenses into capital and non capital expenses to elaborate business activity statement for a hypothetical company in Victoria, Australia
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I am required to classified those expenses into capital and non capital expenses to elaborate business activity statement for a hypothetical company in Victoria, Australia. How should I classified them ?
Expenses Oct to Dec 2018 Bank fees $ 123.09 Citilink and east link $ 842.65 Diesel Fuel $ 745.08 Donation $ 25.00 Equipment $ 44.54 Gas Fuel $ 1,634.16 General expenses $ 362.42 Hardware $ 255.86 Insurance $ 582.77 Light,power, heating $ 263.04 Marketing $ 266.57 Motor vehicle expenses $ 159.09 Office expenses $ 107.02 Parking $ 279.75 Printing and Stationery $ 44.62 Registration $ 206.88 Rent $ 295.00 Superannuation $ 1,408.00 Telephone and internet $ 1,053.00 Travel- National $ 25.20 Wages and Salaries $ 5,008.45 Total Operating expenses $ 13,732.19
I would like to know how to classify those expenses for the business activity statemen
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Capital Expenses:
Equipment 44.54
Hardware 255.86
Motor vehicle expenses 159.09
Non Capital Expenses:
Bank Fees 123.09
Citilink and east link 842.65
Diesel Fuel 745.08
Donation 25
Gas Fuel 1,634.16
General expenses 362.42
Insurance 582.77
Light,power, heating 263.04
Marketing 266.57
Office expenses 107.02
Parking 279.75
Printing and Stationery 44.6
Registration 206.88
Rent 295
Superannuation 1,408.00
Telephone and internet 1,053.00
Travel- National 25.2
Wages and Salaries 5,008.45
Step-by-step explanation
Capital expense (CAPEX) is any expense the business has paid for or incurred which will create a benefit for the business and will be used over the course of the business. It entails payments to buy or improve long-term capital assets, investments, and other purchases which are not used for day-to-day operating expenses. Capital expenses are recorded in a company's balance sheet as assets.
Non-capital Expense or also called Operating Expenses are all other expenses which are required for the day-to-day functions of a business like rent, utilities, insurance, fees and other charges.
