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hi frnds, ihave the following query please clarify as early as possible

if my business nature is producing cycles, and want to make an add about cycles

is add expenses are direct exp  or indirect expenses? and

if i make an aggreement with add agency for one year, can treat that agency as creditor?

what can i give to credit at the time of J.V

 

Replies (2)

1. It is type of Indirect Expenditure

2. Yes. you should treat the advt agency as creditor at the time of passing JV you should credit the party (under sundry creditors group) by debiting expenses head (advertisement & Publicity)

>> Rajesh

IT IS YOUR INDIRECT EXPENSE AND ENTRY SHOULD BE

ADV. EXP A/C DR.

TO CREDITOR FOR ADVERTISING A/C

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