What are the accounting entries to be made in the books of
a. Film production company
b. News broadcasting company
c. T.V. channel
d. Software company
Jag Bhushan Sharma
(Faculty in a B-School)
(633 Points)
Replied 25 November 2009
All the above stated companies should be treated just like any other business entity. Basic fundas remain same for all entities. Simply you should be able to differentiate between revenue and capital expenditure. You should also be clear about revenue recognition principle.
harini
(student)
(59 Points)
Replied 25 November 2009
sir,
can you just elaborate a bit on that- how to differentiate between revenue & capital , how to recognise revenue?
Jag Bhushan Sharma
(Faculty in a B-School)
(633 Points)
Replied 27 November 2009
Any money spent for day to day running of the business can be classified as revenue expenditure. For example rent, salary and telephone bills paid are revenue expenditure. Similarly any amount spent on acquiring such assets which are going to help you create income is called capital expenditure. For example amount paid for purchase of machinery, building and furniture is capital expenditure.
Basic principle for recognising revenue is that, when the seller becomes legally entitled to receive payment for goods supplied or services rendered, he can treat that amount as his income in his books.
Pranjal
(Article)
(52 Points)
Replied 04 December 2009
i agree with Sharma sir u may read Accounting Standered 9 for Revanue Recog.
All basic accounting principle and basic fundas apply to the above cases.
Upendar
(student)
(24 Points)
Replied 11 December 2009
i want update to dates in tally 7.2 please help me
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
