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What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?
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Answer Posted / samarth singh
For example, a billboard costing rs. 2 lacs for 4 years,
then its 50,000 for the present year, and 1,50,000 for
coming years. Deferred Revenue Expenditure should be treated
in two parts:
This year's expenditure, (50,000)
and coming years expenditure, (1,50,000)
This year's expenditure is to be treated as an expense.
Coming year's portion is to be treated as an asset, as a
prepaid expense.
| Is This Answer Correct ? | 6 Yes | 3 No |
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