Accrual journal entries?

[Parvesh Mittal]

Hi, I'd like to know what will be the accruing entry for Marketing & promotional expenses for eg. Abc co. spent Rs. 1Cr. on its Marketing Expenses at the beginning of its FY say on 1st April & they want to recover all this money from its sales revenue. So, what will be the entry for each month to recover all the expenses at the end of the closing of FY?

 

[kirby]

You accrue such an expense only when the service has been performed and you have not yet paid for it.

 

[bklynboy]

I thought marketing was expensed as incurred - in your situation when paid. You cant defer the expense until revenue materializes as unless you can prove that the sale was directly tied to that marketing campaign. In your case it sounds like this is promotional literature which is expensed immediately. This is US GAAP guidance BTW.