Accounts Receivables - Deferred Revenue Expenditure examples

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Deferred Revenue Expenditure examples

What are examples of deferred revenue expenditure?

Total Answers and Comments: 4

Last Update: June 17, 2008 Asked by: swagatika mohanty

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Submitted 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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ARINDAM MUKHERJEE

November 21, 2007 10:13:00

Pavan Kumarq

RE: what are examples of deferred revenue expenditure?...

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

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November 23, 2007 04:22:11

subramaniam

RE: what are examples of deferred revenue expenditure?...

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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December 17, 2007 05:50:08

ketavarapu

Member Since: June 2007 Contribution: 11

RE: what are examples of deferred revenue expenditure?

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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June 17, 2008 05:44:43

carajes

Member Since: June 2008 Contribution: 2

RE: Deferred Revenue Expenditure examples

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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