Question

Mr Ram paid Rs.100000 for advertisement board for 10 years

Answer 1

Advertisement Expenses incurred for 10 years gives benefit over 10 years.

Hence, it can be treated as a deffered revenue expenditure.

For the current year, advertisement expenses incurred can be treated as Rs.1,00,000/ 10 years = Rs.10,000. And for the next 9 years, we shall pass the same entry.

Journal Entry :

Advertisement A/C     Dr     Rs.10,000

     To Cash A/C (or) Bank A/C     Rs.10,000

(Being advt. expenses incurred)

Answer 2

Hey mate ✌️✌️


Journal Entry ⏬⏬⏬


Advertisement A/c..........................Dr...100000
...............To cash A/c....100000


✨ Hope this helps you ✨