Atul h Kaulwar (Article) (91 Points)
26 September 2009The Company pays commission to agent for bringing the cutomers for sale, the sale agreement plan is provides for installment payment of sale consideration, however the sale agreement is made only after paying the certain instalments, therefore till the date of sale agreement the amount received will treat as advance from cutomers,
wheter the commission paid to agent for the same advance from cutomer can be deffered for the future period
machender
(student)
(190 Points)
Replied 26 September 2009
Mr.Atul
as per Matching Concept, the expenditure should match with respected income.
so the expenditure should be deferred so that it matches with the income.
for further clarification please refer Matching Concept.
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