What is deffered revenue expenditure?explain with an example...
Dhruthi has given the right meaning ...I will give one ex
Expenditure for advertisements of new product is one time expenditure but benefit is enjoyed for more than one year
It is a revenue expenditure, the benefit of which is spread for more than 1 yr. Shown in balance sheet until written off to p&l acc.
Eg- preliminary expense 20 lakh written off for 5yrs. The statement means that the yearly expenditure is 20lakh/5 yrs= 4lakh