What is semi variable expenditure and example?
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Answer / vp
Semi-variable:- Costs that have both a variable and fixed
component.
Eg -Commercial leases. They often have a fixed rent per month
plus an additional rent based on the amount of production or
sales.
For example, rent is Rs 6,000 plus Rs0.50 for each product
that is made.
The base rent of Rs 6,000 is a fixed cost and the Rs 0.50 per
product is a variable cost.
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my boss (Managing Partner of a firm) promoted along with his wife a private limited company. he and she spent some Rs. 75,000/- (approx) for the promotion of the company. i know that they usually fall under the head of preliminary expenses. but after receiving the certification of incorporation of the company how shall i repay them to the promoters i.e. what is the accounting entry in the books (initial books of accounts) for the expenditure incurred. they have kept in hand 5,00,000/- each to meet the expenses and they were allotted shares of equal to the amount. can i allot shares for a consideration of cash from and excluding the preliminary expenses. can i take cash towards the share application money (being the cash more than Rs. 20,000/-) as the company has not opened a bank account yet. please give me the detailed answer with journal entries that can be entered in tally. thank you.
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