hoarding/banner of warning, instructions, location of firm is recorded as
and is it capital or revenue expenditure ??
12 Replies
Atharv Sankliya
(1354 Points)
Replied 29 September 2022
Warning instructions and hazards sign board at petrol pump is also recorded as advertisement exp ???
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 29 September 2022
Yes there is no future economic benefit from.them. it's treated like internally generated goodwill and expenses.
Atharv Sankliya
(1354 Points)
Replied 29 September 2022
Sir
depreciation is charged on a fixed assets on straight method say ₹1 lac /year if the machine is overused during a year how it is recorded ??
depreciation is charged on a fixed assets on straight method say ₹1 lac /year if the machine is overused during a year how it is recorded ??
sabyasachi mukherjee
(27579 Points)
Replied 29 September 2022
Hoarding of capital and revenue expenditure is not possible. Revenue expenditure if of larger magnum may be treated a deferred revenue.
Atharv Sankliya
(1354 Points)
Replied 29 September 2022
How warning and hazards sign is advertisement ??
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 29 September 2022
It's a goodwill. There is a company called ITC which maintains roads by giving dustbins or radium signboards. Like that many companies do. But that advertisement need not give them revenues, so it is expensed. Besides, these behemoth companies do it as CSR initiative as well.
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 29 September 2022
Hoarding or pooling of different class like revenue and capital is not possible.
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 29 September 2022
So this is like 2% of three years profits.
Dr. Retained Earnings
Cr. Bank
But since you have to record the e event, it'll be like
Dr. CSR expense
Cr. Bank
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 01 October 2022
Because the three years profits carried down are in it.
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