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What are examples of deferred revenue expenditure?

Asked by: Interview Candidate | Asked on: Oct 25th, 2007
Showing Answers 1 - 6 of 6 Answers
Pavan Kumarq

Answered On : Nov 21st, 2007

A huge amount paid as Insurance Premium, on which insurance covered for more than one year

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Answered On : Nov 23rd, 2007

A deferred revenue expenditure is that where the benefit the expenditure can be had for more than ONE accounting period and less than FIVE accounting periods. There are no hard and fast rules that the period is linted to 1 - 5. It is just an assumption. It stands as an expired cost after the business entity has had the complete benefits. It is written off every year.

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Answered On : Dec 17th, 2007

View all answers by ketavarapu

It is mainly revenue expenditure incurred in the initial stage but the benefit of which will also be available in the sebsequent years is called deferred revenue expenditure.Part of the expenditure is written off each year by debiting to P&L A/C and the remaining will be shown in the B/S. Ex. AdvertisementExps of Rs.50000/-. Every year Rs.10000/- will be written off over a period of 5 years.

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Answered On : Jun 17th, 2008

View all answers by carajes

It is an expenditure the benefit of which will be realised over a period and not during the current period.Ex-Heavy Advertisement expenditure incurred by the company for promoting the product.The benefits of this huge expenditure will be realised over the period and not in the same period when it is incurred.

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Answered On : Oct 26th, 2011

Heavy advertisement expense is the best example of deferred revenue expenditure. it have both quality of revenue and capital so its also called capital expenditure

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Netrajit Abujam

Answered On : Jul 26th, 2013

Q. 1. white washing of the factory building at the cost of Rs.5,000/-
2. Paper purchased for used in the office as Stationery amount to Rs.1500/-
3. Commission paid to the broker in regard to purchase of land amounted to Rs.3,000/-
4. Replace of the wooden floor by tiles in your office.

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