A co applied for export of medicines. To what account, should the application fees be debited and should bank charges for draft of same and postage charges be charged to same account, and what should be its treatment. Should it be capitalised? If yes, under what head?
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Expenses for approval
Replies (2)
Any expenditure specificaly incurred for export, should be booked in separate account head, which may be-" Export sale expenses".
If the expense is substantial/considerable it has to be capitalised and written off yearly on an equitable basis.(If the license is valid for a certain period,then it has to be amortised over that period)
If the expense is minimal/negligible it may be written off.
when the head of the account is concerned it may be "Export Business Expenses"
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