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What is deferred revenue expenditure ?

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What is deferred revenue expenditure ?

Posted by Anshu Sharma 5 years, 3 months ago

CBSE > Class 11 > Accountancy

3 answers

Sheetal Cutie?? 5 years, 3 months ago

There are certain expenditure which are revenue in nature but benefit of which is derived over number of year.for example huge advertisement expenditure

Anushka Raj 5 years, 3 months ago

Deferred revenue expenditure is a revenue expenditure whose usefulness extends over more than one accounting period

Yogita Ingle 5 years, 3 months ago

Deferred Revenue expenditure are usually large in amount and benefits are not consumed within the same accounting period. Part of the amount is shown in profit and loss account and is reduced from total expenditure and rest is shown in balance sheet. These expenditure does not result in an asset creation. That's why these are shown under the head miscellaneous expenditure.

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