Current assets
This query is : Resolved
kalyanigovindarajan
(Querist)
02 November 2011
Explanation of Deferred Revenue Expenses and entries in account book
14 May 2012
Deferred revenue expensditure is a revenue expense incurred in the current accounting year but which is expected to give benefits in future periods also.
For instance huge expense on advertisement.
The enterprise estimates the period for which the benefit is expected to be received and spreads the total expenditure over that period.
Entries will be:
Advertisement A/c Dr (Current year share)
Deferred Advertisement A/c Dr
To Bank (Total)
Every year :
Advertisement A/c Dr
To Deferred Advertisement A/c
For instance huge expense on advertisement.
The enterprise estimates the period for which the benefit is expected to be received and spreads the total expenditure over that period.
Entries will be:
Advertisement A/c Dr (Current year share)
Deferred Advertisement A/c Dr
To Bank (Total)
Every year :
Advertisement A/c Dr
To Deferred Advertisement A/c
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