What are examples of deferred revenue expenditure?

Showing Answers 1 - 15 of 15 Answers

Pavan Kumarq

  • Nov 21st, 2007

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

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  • 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.


  • Dec 17th, 2007

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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  • Jun 17th, 2008

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.


  • 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

  • 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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bhushan adhave

  • Nov 1st, 2014

Deferred revenue is a liability because it refers to revenue that has not yet been earned, but represents products or services that are owed to the customer. It is an advance payment received for delivering service or product.

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aneel kumar

  • Oct 27th, 2015

Which will help to the company for future revenue generation is known as def. revenue expenditure. that expenditure incurred present accounting year.

Examples: Product development cost,product design cost, heavy advertising expenditure, heavy sponsorship exp, employee separation cost & debt insurance cost.

Entry is:

miscellaneous exp a/c - dr
cash/bank a/c - cr

These expenditure write off over a period of 2 to 3 years and reported in assets under miscellaneous expenses.

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Srinivas Rebbala

  • May 31st, 2016

In addition to the above answers differed Revenue Expenditure will be amortized over Equal no. of years

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  • Jun 22nd, 2016

Deferred revenue is a liability because it refers to revenue that has not yet been earned, but represents products or services that are owed to the customer. As the product or service is delivered over time, it is recognized as revenue on the income statement.

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Gautam Modi

  • Jul 22nd, 2016

Deferred revenue expenditures are fictitious assets of the company which are amortized over equal number of years. It can also be considered as a undistributed losses. Examples : Company formation expenses, Preliminary Expenses, Incorporation expenses etc.

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Ratnadip Dey

  • Sep 12th, 2016

Deferred revenue expenditure is a expense but revenue in nature which is incurred during an accounting year but its benefit are to derived over the number of following accounting period. Advertisement expenses is a example of Deferred revenue expenditure.

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  • Jun 21st, 2017

Purchase of equity shares

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  • Jun 21st, 2017

Purchase of equity shares. Is it deferred revenue expenditure

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  • Jan 27th, 2018

Heavy expenditure incurred on advertisement for which the benefit is enjoyed by the company in the future years.

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