Question

What is a meaning of unmortised expenses

Answer 1

unamortized Expenses are those expenses that are written off to the company's Statement of Profit/Loss periodically. The benefit that is received from incurring such expenses is not enjoyed in a single year and therefore they are not charged completely in the year in which they are incurred. They are written off gradually over the period in which the benefit is expected to be derived from such expenses. For eg. share issue expenses, discount on issue of shares & debentures or preliminary expenses. Preliminary expenses are a type of unamortised expenses.

Answer 2

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