when business purchase machinery , equipment , furniture this all are expenditure for business , means business spend money for long term tenure , when one time exp. spend not need to spend again and again , so this is capital nature are include in balance sheet '
but expense is totally opposite . when business paid rent , salary , elecrecity bill, repair this all are expense for business , means business spend money for short term tenure , and need to spend every year , it is revenue nature and include in profit and loss account .