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Advertisement exp.

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ARTICLE
752 Points Posted on 04 April 2020
If advertisement exp is rs 12000 and 50% is carried forward to the next year...then what is the journal entry??
advertisement exp Dr 6000
to advertisement exp payable a/c 6000

is this correct ???
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On 04 April 2020 at 15:57 Report
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"Do the Right Thing...!!!"
128147 Points Posted on 04 April 2020
Is this correct ???

- No.
463 Reply
On 04 April 2020 at 16:30
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teaching
2046 Points Posted on 04 April 2020
As per companies act 2013 advertisement experience can be considered as revenue expenditure.
7 Reply
On 04 April 2020 at 16:45
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"Do the Right Thing...!!!"
128147 Points Posted on 04 April 2020
@ Mr Satish.,

Yes... You are correct.

But,
Some of the service will give yearly basis and amount will be collect advance basis...
463 Reply
On 04 April 2020 at 16:52
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teaching
2046 Points Posted on 04 April 2020
Yes. in that case as per the agreement current year expenditure is debited to profit and loss a/c. next year advertisement expenditure which is paid in advance is considered as expenditure paid in advance.
7 Reply
On 04 April 2020 at 17:09
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"Do the Right Thing...!!!"
128147 Points Posted on 04 April 2020
Yes... I agreed to You.
Can it it's accounted as "PREPAID EXPENSES" to next year.

But,

I ask correct details from Querist.
Bcoz, some times after our standard reply Querists ask wrongly. So, Only I ask sometimes details.
463 Reply
On 04 April 2020 at 17:12
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ARTICLE
752 Points Posted on 04 April 2020
Ok. ...Means entry will be...

prepaid exp on advertisement a/c Dr 6000
to advertisement exp. a/c 6000....

right????
2 Reply
On 04 April 2020 at 17:19
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"Do the Right Thing...!!!"
128147 Points Posted on 04 April 2020
May be...
But,
It's based on its periods...
463 Reply
On 04 April 2020 at 17:21
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ARTICLE
752 Points Posted on 04 April 2020
May it be revenue or deffered revenue exp...???
2 Reply
On 04 April 2020 at 17:23
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"Do the Right Thing...!!!"
128147 Points Posted on 04 April 2020
Yes...
Balance (which is not accountable in the same FY) amount is "differed revenue" expense.

But,
Divide as per period of use...
463 Reply
On 04 April 2020 at 17:34
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Consultant
1891 Points Posted on 04 April 2020

If the advertisement expense is in the form of a license at some marketing agency then you can make pre and post expenditure.

Advertisement expense A/c Dr. 

Prepaid Advertisement expense A/c Dr.

      To Advertisement expenses payable A/c Cr. 

1 Reply
On 04 April 2020 at 17:41
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"Do the Right Thing...!!!"
128147 Points Posted on 04 April 2020
Advertisement expense A/c Dr. 

Prepaid Advertisement expense A/c Dr.

      To Advertisement Agency a/c
463 Reply
On 04 April 2020 at 17:43
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Student
360 Points Posted on 04 April 2020
Case 1 - Advt. exp is 12000 belongs to 1 FY and only 6000 has been paid :-

Advertisement exps A/c dr. 12000
to bank Account 6000
to advertisement o/s or payable 6000


2. if 6000 exps belong to next Fy and you had paid 12000


Advertisement exps dr 6000
advertisement prepaid account 6000
to bank account -12000
1 Reply
On 04 April 2020 at 19:30
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"Do the Right Thing...!!!"
128147 Points Posted on 04 April 2020
No...

Any of the expenses which is in the current year (say march) and the payment will be payable in next month (say Apr) then only will be prepare provisional entry...

Provisional entry (as payable) can't be future expenses...
So,
Payable entry is wrong as per query. Here payment expenditure will be split as per usage. Not for payments to suplier...
463 Reply
On 04 April 2020 at 19:43
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ARTICLE
752 Points Posted on 05 April 2020
Thank you so much to all....
2 Reply
On 05 April 2020 at 14:30


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