kindly tell what is the differnce between prepaid and deferred expenditures???
10 Replies
Ravikant
(Accountax)
(6285 Points)
Replied 21 June 2011
prepaid exp is the exp paid in advance
Deferred exp are exp the benefit of which will accrue for more than a year
Nikhil Akhawat
(CA)
(336 Points)
Replied 21 June 2011
| Originally posted by : Ravikant | ||
 |
prepaid exp is the exp paid in advance Deferred exp are exp the benefit of which will accrue for more than a year |
 |
Abhijeet Deshpande
(Co-Founder & Manager @ Tax-Yantra)
(1171 Points)
Replied 21 June 2011
| Originally posted by : Ravikant | ||
|
|
prepaid exp is the exp paid in advance Deferred exp are exp the benefit of which will accrue for more than a year |
|
For Example, Insurance premium paid is prepaid,i.e, paid before it is due while Payment towards advertisement is deferred, i.e, incurred in bulk at the single time, but benefits of which can be received for upcoming years.
CA abhinandan agarwal
(CA CS Bcom(H))
(174 Points)
Replied 21 June 2011
prepaid exp is the exp paid in advance
Deferred exp are exp the benefit of which will accrue for more than a year..
it generally for 1 years but deffered is more than 3-5 years...
vipul patel
(Ahmedabad)
(320 Points)
Replied 21 June 2011
prepaid Exps. Means Paid in advance
and Differed Epxs. means the nature of exps is revenue but the benefit get more than one year
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 21 June 2011
i agree with above views
Yogesh Gupta
(Advocate)
(293 Points)
Replied 21 June 2011
| Originally posted by : ABHIJEET DESHPANDE | ||
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Originally posted by : Ravikant prepaid exp is the exp paid in advance Deferred exp are exp the benefit of which will accrue for more than a year For Example, Insurance premium paid is prepaid,i.e, paid before it is due while Payment towards advertisement is deferred, i.e, incurred in bulk at the single time, but benefits of which can be received for upcoming years. |
|
agree....
Ankit
(Trainee-Taxation)
(31 Points)
Replied 22 June 2011
Prepaid expenses are those which are paid in advance and their benefit is received later
Deferred expenses are those whose expenses which are spread over a number of years.
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