Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Deferred Expenditure

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

kishan

kishan (Querist)

07 October 2017 what is deferred expenditure? with example please...

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

08 October 2017 Deferred expenses are those expenses benefit of which recived in more than 1 year. So same is generally not charged to P&L in a single year. Same is written off(deferred) every year.

Radhakrishnan K.V.

Radhakrishnan K.V. (Expert)

08 October 2017 A deferred expenditure is a cost which is substantially high that has already been incurred, but which has not yet been fully consumed. The result of such expense will spread out over a period which may extend to the next FY or beyond .The expense is recorded as an asset as deferred expenditure until such time and is debited to the P&L account each year evenly. For example large expenses by way of advertisement may be shown as deferred expenditure in the asset side of Balance Sheet and divided and charged to the P&L account every till the cost is covered and deferred expense exhausted.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now