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Answer Posted / anjali sharma
Deferred Revenue Expenditure consist all those exp. which
are heavy in nature and we can't chare these exp. in single
financial year.
Foe Eg: Formation Exp. like we are going to open a new
firm and for the promotion of firm we are panning to
advertise teh firm through hordings and through very good
inaugration party, it will consisit a huge amount of Money
if we charge Whole amont in ones time than firm will show
Loss automayicaly That is whay we charge this Exp. in no.
of Years (in next five years or three years etc...) These
are Differed Revenue Expenditure.
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