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Expenditure treatment

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pavazh

Cost Accountant

54 Points Posted on 03 November 2014

Dear All

Thanks in Advance

Recently we increased our share capital for that we spend some Money for Documetation charges in ROC.Under Which Head I book this Amount for Accounting purpose? Can i treat this as Capital Expenditure or Revenue expenditure?

Immediate reply will help to resolve the isssue.

Replies (1)

rohit

Student CA Final

119 Points Posted on 08 December 2014

Share issue expenses should be booked as Deferred revenue expenditure & w/off over a reasonable period e.g. 5 yrs. Therefore treat as above & booked under " misc. expenditure" in aseets side of balance sheet