Deferred Revenue Exp.

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Querist : Anonymous (Querist)
30 November 2010 What is the exact meaning of Deferred Revenue Expenditure.....?
Please illustrate with an example.

30 November 2010 Deferred revenue exp. is the revenue expenditure, the benefit of which flows for more than year.

Suppose any capital expenditure incurred for rennovation of rented property. The benefit of which will be recd. over a period of more than one year. Such expenditure will be written off over a period uptill the benefit receives.

Heavy expenditure on advertisement is another example of deferred revenue exps.

30 November 2010 Deferred Revenue expenditure have the mixed character of Both capital and revenue expenditure.

The benefit of this expenditure will flow more than one accounting period


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