Miscellaneous expenditure and p % l a/c (dr)

This query is : Resolved

Amit Kumar Sharma (Querist)
Follow

11 January 2013 Query:

Regarding miscellaneous expenditures, 12th class TS Grewal book (supplement- preface- silent feature page) says that Unamortised portion of Miscellanous expenditures MUST either be adjusted against securities premium account
or debited to statement of profit and loss.

Some other books and NCERT supplement guidelines say that: The unamortised portion of such expenditures should be shown under "Other current assets" or "Other non current assets" depending on whether they will be amortised in the next 12 months or thereafter.

These two methods seem to be contradicting each other.
Which of the above methods is right. Can we call both of them right Please also suggest some study material (book) to get more clarificaiton.

Thanks in advance

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
Follow

11 January 2013 Dear Friend, According to Changed Schedule VI , the Micellaneous expenditure should be show as a part of Other Current Assets or Other Non Current Assets depending on its period of amortisation. Thanks

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
Follow

11 January 2013 Both are correct:

1.Preliminary expenses and commission paid or discount allowed on, any issue of shares or debentures of the company, premium payable on the redemption of any redeemable preference shares or of any debentures- can be adjusted against to the extent of security premium.(Sec.78 of companies act)

2.Balance and others should be shown under current or non current assets.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!