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What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?
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Answer Posted / vishal rana
Treatment of Deffered Revenue Expenditure :-
Example : - If we incurred Rs. 2,00,000/- expenses for the
developement of New Product during the F.Y. 2009-10. & We
Presume that the benefit of which we have received upto 5
years than
During 1st year (i.e. F.Y. 2009-10) we charged Rs. 40,000/-
as an expenses for the year and debited to Profit & Loss
Account & remaining balance i.e. Rs. 1,60,000/- we shown
under the head MISCELLANEOUS EXPENDITURE (To the Extent of
not W/off) on Asset Side.
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