16 April 2015
Greetings Shivani, An expense which is pre operative can only be capitalised if their is a probabiity that the asset can generate future economic benefit. So the treatment would be , since it is an expenditure... Asset A/c To Bank/Cash Asset A/c would be that asset for which such expense have been made .. If there is no expectation or any future benefit , then it has to be trasnferred to P&L account.
16 April 2015
Greeting Shivani, Yes to the limited knowledge i have, i am sure that A.S 26 should help you with this especially if i am not wrong Para no 51-57 , u could refer to. U may use thank button to convey your appreciation
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