Accounting for GST

Accountancy

Sir, in the example, the faculty provides services. Since it is a recorded video class, the fees paid is a one time payment and Indigo can earn benefits for longer period than compared to face to face class. So by this logic, can we say, the fees paid to faculty for recorded classes will be a capital expense and the fees paid to faculty for face to face class will be a revenue expense. Video Details ------------- Accounting - CA Foundation (New) Accounting for GST #4. Accounting for GST

Vignesh Venkatesan

CA Final

★ 5

12-Aug-25 12:51

160

Answers (1)

We capitalise Fees paid to record classes. This is shown as intangible asset on the balance sheet. Face to face fees is one time and is revenue expenditure.

CA Suraj Lakhotia

Admin

12-Aug-25 13:17