Expenditure treatment

A/c entries 271 views 1 replies

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)

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 


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