Preoperative expenses

PRAVIN DALAL (GM Corporate - Accounts)   (37 Points)

07 January 2012  

Hi 

 

I would like to know

IF PREOPERATIVE EXPENSES ARE INCURRED BEFORE BUSINESS IS COMMENCED THAT CAN BE CAPITALISED.

BUT WHAT WOULD BE ENTRIES FOR  EXPENSES INCURRED FOR CREATION OF ASSET AND ACTUAL OPERATING EXPENSES REVENUE IN NATURE. HOW TO KEEP A TRACK IF THIS ALL EXPENSES ALL MAINTANED BY 3 PARTNERS BY PAYMENT OF CASH AND PERSONNEL BANK ACCOUNTS.

I WANT TO KNOW WHICH ACCOUNT SHOULD BE CREDITED ? IF NOT THE EXPENSES PAYABLE ACCOUNT ?