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Underwriting commission is classified as …………..?

<p><strong>A. Capital Loss</strong></p> <p><strong> B. Capita Expenditure</strong><strong>C. Revenue expenditure </strong></p> <p><strong>D. Deferred revenue expenditure</strong></p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/12/03
Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

D. Deferred revenue expenditure

Mohammed Salim Allana
by Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

C. Revenue expenditure

SHINU SAM JOY
by SHINU SAM JOY , Accountant , Neat and Net LLC

D

Khurrum Iqbal
by Khurrum Iqbal , Accountant , Akun Logistic Services

 

- underwriting commission is the fee investment bankers charge for underwriting a security issue, now question stated as, it is classified as.. ?

it is considered as deferred revenue expenditure (D).

Underwriting commission paid is capital loss for the company. This will be shown in the asset side of the Balance Sheet under the head. 'Miscellaneous Expenditure' .

Ans. Capital Loss

SAMPATHKUMAR THANGAVELU
by SAMPATHKUMAR THANGAVELU , Chief Accountant , ALHASAWI INDUSTRIAL GROUP

D

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

The correct answer C

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