How do I account for promotional items?
submitted by Owen Cash

Sudheer

Promotional items or expenses can be accounted in two scenarios.If these expenses incurred at the initial stage of business or pre incorporation, we have to consider it as deferred revenued expenditure that can be written off for a specified period.If these expenses incurred during the course of business or after starting the operations of the business, it can be considered as Advertisement Expenses that can be charged to profit and loses of during the same period.