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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Advertisement exp.
Replies (14)
Quick Summary
Is this correct ???
- No.
- No.
As per companies act 2013 advertisement experience can be considered as revenue expenditure.
@ Mr Satish.,
Yes... You are correct.
But,
Some of the service will give yearly basis and amount will be collect advance basis...
Yes... You are correct.
But,
Some of the service will give yearly basis and amount will be collect advance basis...
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.
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.
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.
Ok. ...Means entry will be...
prepaid exp on advertisement a/c Dr 6000
to advertisement exp. a/c 6000....
right????
prepaid exp on advertisement a/c Dr 6000
to advertisement exp. a/c 6000....
right????
May be...
But,
It's based on its periods...
But,
It's based on its periods...
May it be revenue or deffered revenue exp...???
Yes...
Balance (which is not accountable in the same FY) amount is "differed revenue" expense.
But,
Divide as per period of use...
Balance (which is not accountable in the same FY) amount is "differed revenue" expense.
But,
Divide as per period of use...
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.
Advertisement expense A/c Dr.
Prepaid Advertisement expense A/c Dr.
To Advertisement Agency a/c
Prepaid Advertisement expense A/c Dr.
To Advertisement Agency a/c
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
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
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...
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...
Thank you so much to all....
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