hoarding/banner of warning, instructions, location of firm is recorded as
and is it capital or revenue expenditure ??
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Hoarding capital or revenue expenditure
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Advertisement Exp ( Revenue)
Warning instructions and hazards sign board at petrol pump is also recorded as advertisement exp ???
Yes there is no future economic benefit from.them. it's treated like internally generated goodwill and expenses.
Sir
depreciation is charged on a fixed assets on straight method say ₹1 lac /year if the machine is overused during a year how it is recorded ??
depreciation is charged on a fixed assets on straight method say ₹1 lac /year if the machine is overused during a year how it is recorded ??
Hoarding of capital and revenue expenditure is not possible. Revenue expenditure if of larger magnum may be treated a deferred revenue.
How warning and hazards sign is advertisement ??
It's a goodwill. There is a company called ITC which maintains roads by giving dustbins or radium signboards. Like that many companies do. But that advertisement need not give them revenues, so it is expensed. Besides, these behemoth companies do it as CSR initiative as well.
Hoarding or pooling of different class like revenue and capital is not possible.
So how the entry is passed for this CSR ??
So this is like 2% of three years profits.
Dr. Retained Earnings
Cr. Bank
But since you have to record the e event, it'll be like
Dr. CSR expense
Cr. Bank
Why dr. retained earnings
Because the three years profits carried down are in it.
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