Hi All,
A Director incurred Rs.30,000/- for formation of Company.paid to CA.
How to record in the books of Accounts and how to write-off as per companies act,2013
Thanks
ANKUR TAH
(Teacher Consultant and CA finalist.)
(543 Points)
Replied 29 September 2016
Rahul Shah
(Assistant Chartered Accountant)
(196 Points)
Replied 29 September 2016
As per the Latest Companie act 2013 All Preliminary Expenenses Should be Writeoff 100 % in same Year. However 1/5 Can be Claimed as per Income tax Act u/s 35D
ANKUR TAH
(Teacher Consultant and CA finalist.)
(543 Points)
Replied 29 September 2016
Ashwin N
(Chartered Accountant)
(192 Points)
Replied 29 September 2016
means show it as legal & professional expenses .what will be the entry.
Professional Expenses A/c .............Dr.
credit .............which account ?
Thanks
Ashwin N
(Chartered Accountant)
(192 Points)
Replied 29 September 2016
whether show it as loan from director.
thanks
CA PALLAVI GUPTA
(Professional)
(592 Points)
Replied 29 September 2016
Ashwin N
(Chartered Accountant)
(192 Points)
Replied 29 September 2016
whether it can shown as loan from director,since director has paid it from his pocket.
CA PALLAVI GUPTA
(Professional)
(592 Points)
Replied 29 September 2016
Ashwin N
(Chartered Accountant)
(192 Points)
Replied 04 October 2016
Whether it to be shown
1.Payment to Auditor or
2.to be shown in Legal & Professional fees
in other expenses
CA Tanvi Sheth
(Consultant)
(232 Points)
Replied 04 October 2016
Hello,
For passing journal entry, just pass entry as:
Preliminary exp dr.
to loan from director's
In narration mention that the expense pertain to Auditor's fee for reports.
Also see to the fact that these expense will attract deferred tax, as treatment in books and tax will defer.
Then for next five yrs pass entry as:
Preliminary exp written off
To Preliminary exp
CA Tanvi Sheth
(Consultant)
(232 Points)
Replied 04 October 2016
Hello,
For passing journal entry, just pass entry as:
Preliminary exp dr.
to loan from director's
In narration mention that the expense pertain to Auditor's fee for reports.
Also see to the fact that these expense will attract deferred tax, as treatment in books and tax will defer.
Then for next five yrs pass entry as:
Preliminary exp written off
To Preliminary exp
CA Tanvi Sheth
(Consultant)
(232 Points)
Replied 04 October 2016
Hello,
For passing journal entry, just pass entry as:
Preliminary exp dr.
to loan from director's
In narration mention that the expense pertain to Auditor's fee for reports.
Also see to the fact that these expense will attract deferred tax, as treatment in books and tax will defer.
Then for next five yrs pass entry as:
Preliminary exp written off
To Preliminary exp.
Show it on asset side of Balance sheet and the writtten off amount in P&L.
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