Praveen Kumar (learner) (51 Points)
28 March 2014i have doubt regards one of the client is EX-MLA they spent election expenses on 2009 and they showed that expenses in balance sheet as deffered expenses it is correct, or not, if it is correct how to set off those expenses..if it is wrong tell me the correct procedure with explanation
Danish
(GST Practitioner)
(219 Points)
Replied 28 March 2014
Praveen,
First I will Explain What Is Deffered Expenses,
"The term "deferred expense" is used to describe a payment that has been made, but it won't be reported as an expense until a future accounting period".
On Other Hand It Is Like Prepaid Expenses Which Is Not Expired,
Deffered Expenses Treated as Asset On Balance sheet Untill they Expires
As it Expires It Has to be moved to expenses a/c
Praveen Kumar
(learner)
(51 Points)
Replied 28 March 2014
elections is not a business type it is purely service oriented ..how those expenses should be write off if it is business entity they adjust their expenses with profit ,but it is not business entity
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