The amount spent on unsuccessful patent rights is ___________.
A
Capital Expenditure
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Deferred revenue expenditure (if the amount is large)
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Revenue expenditure(even though the amount is large)
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D
None of the Above
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is C Revenue expenditure(even though the amount is large) Amount spent on unsuccessful patent is to be treated as revenue expenditure as the amount spent is a complete loss and no future benefit is expected from this. Hence this should be charged to profit & loss account in one go.