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Revenue expense wirteoff through revenue reserve

A/c entries 826 views 2 replies

Please can u tell me, is there any guidelines, section and notification issued by the MCA, RBI, ICAI and any other insitution related with Revenue Expenses written off through Revenue Reserve instead goes to Profit & Loss Accounts.

Please tell me which type of  Revenue Expense directly debited to Revenue Reserve

Replies (2)

You cannot set-off revenue expenses against Revenue Reserves as it would be against the matching Concept.

Profit /loss on sale of shortterm investment can be cr./dr. To investment reserve rather than profit/loss a/.c


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