20 May 2010
Miscellaneous expenditure in the asset side of the balance sheet normally comprises of the following items.
1) Preliminery Expenses i.e.expenditure incurred to bring an enterprise into existence. 2) Expenditure on raising of shares and debentures including underwriting commission, brokerage etc and discount on shares and debentures. 3) Development expenditures.
These expenditures are not revenue in nature and hence shown in the asset side of B/s., and should be amortised/written off over a period of time.
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