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Why we deducted advertisement expenditure and …

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Why we deducted advertisement expenditure and ADD workmen compensation reserve & p& L( cr. Bala.) While calculating hidden goodwill??

Posted by Yashwant Rawat 7 years ago

CBSE > Class 12 > Accountancy

2 answers

Hemant Ghritlahre 7 years ago

Because it was the expenditure. Partners in the firm wanted to do promotion of their products and for that they do promotional like add in TV providing online service and may more. Which was the expenditure of firm. That's why they deduct that amount.

Risika Nath 7 years ago

Advertisement expn is an expense so it is deducted bt wcr if it is nt claimed then cn be distributed among partner

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