Brokerage on issue of shares and debentures is which expenditure
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Deferred revenue expenditure, bco'z this expenditure incurred in once but gives a long term benefit.
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Brokerage on the issue of ‘shares and debentures’ is a Deferred Revenue Expenditure.
Explanation:
- The amount that is ‘spent’ on providing returns in the form of profits is called revenue expenditure.
- When there is a large ‘amount of revenue’ that is spent on getting a benefit over a period of time is called deferred revenue.
- The ‘brokerage’ on the issue of shares, debentures and other expenses that are spent for the running of the business are all part of the deferred revenue.
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