Explain deferred revenue expenditure with examples.
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The huge revenue expenditure the benefit of which may be carried over a number of years and not for the current year only is known as deferred venue expenditure. such expenditures are continued to be shown in balance sheet till their return off. the amount which is written off is shown in debit side of the profit and loss account and the amount which has not been written off its own in the asset side of balance sheet
Eg: first preliminary expenses in formation of company
second use advertise meant expenses
third extraordinary loss incurred on sale of fixed assets.
fourth underwriting commission
fifth expenses brokerage discount etc on issue of shares and debentures.
Eg: first preliminary expenses in formation of company
second use advertise meant expenses
third extraordinary loss incurred on sale of fixed assets.
fourth underwriting commission
fifth expenses brokerage discount etc on issue of shares and debentures.
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