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What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?

Answer Posted / samarth singh

For example, a billboard costing rs. 2 lacs for 4 years,
then its 50,000 for the present year, and 1,50,000 for
coming years. Deferred Revenue Expenditure should be treated
in two parts:

This year's expenditure, (50,000)
and coming years expenditure, (1,50,000)

This year's expenditure is to be treated as an expense.
Coming year's portion is to be treated as an asset, as a
prepaid expense.

Is This Answer Correct ?    6 Yes 3 No



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