Answer / narasimhaprasad

deferred expenditure means an expense that is paid before
the corresponding benefit is fully received, such as a
prepaid insurance premium. For accounting purposes, the
expense is listed as an asset until the paid-for benefit is
obtained, and is usually prorated over a number of
subsequent accounting periods,

as deferred Capital expenditure is benefit for more than as
investment is occurred- eg: Staff sales, Allowance, Perqs,

and deferred revenue expenditure is benefit for the
requirement full filled, that purpose can't be continue for
long life eg: Traveling expenditure for camp/tour program,
meals and drinks on office purpose.

Answer / syed iliyas

Capital expenditure is the expenditure the benefit of it
not end for the curent financial year but it continues for
2, 3, 4-5 years. And this type of expendeture is spends to
videning the business for ex. adding additional assets like
additional machienery to develop the production and
videning the godown space to improve the storage capacity
are the best examples.
And revenue expenditure the expenditure of which benefit
ends for the running financial year like salaries, purchase
of goods for resale and payment of office expences or other
payments for which the company has recieve any service.
Finally all the capital expendeture will goes to the
balance sheet and the reveneu expenditure will goes to
profit and loss account.

Expand---------MRTD

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Expand---------TRSP

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sir, i am working in part time job in welding institute in that some expenses will come cylinder and scrap material and rods w (welding) these all are direct expense or indirect expenses , please explain

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what is different between LC's and BG's

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accounting rules

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Is Paper-Gold also called as Special Drawing Rights or Global Depository Receipts?

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Short Answer on _____________Intangible Assets

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1. How do we calculate the Closing Stock ? 2. How many types methods are used for calculating closing stock ?

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N N SALES: DEPT A 150000 DEPT B 2500 100000 newspaper 1000 rates 500 elect 250 salary 10000 stock 1/4/92 :dept A 2300 DEPT B - stock :1/4/93 dept A 1200 dept B 700 newspaper 300 prepare trading profit and loss account. thanx

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expand-----KGH

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