hoarding/banner of warning, instructions, location of firm is recorded as
and is it capital or revenue expenditure ??
Atharv Sankliya (1323 Points)
29 September 2022
Atharv Sankliya
(1323 Points)
Replied 29 September 2022
Yasaswi Gomes new
(Finance )
(4492 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
(1323 Points)
Replied 29 September 2022
sabyasachi mukherjee
(27117 Points)
Replied 29 September 2022
Atharv Sankliya
(1323 Points)
Replied 29 September 2022
Yasaswi Gomes new
(Finance )
(4492 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 )
(4492 Points)
Replied 29 September 2022
Hoarding or pooling of different class like revenue and capital is not possible.
Yasaswi Gomes new
(Finance )
(4492 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 )
(4492 Points)
Replied 01 October 2022
Because the three years profits carried down are in it.
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