Accounting treatment of exps incurred for purchasing new co.

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Querist : Anonymous

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20 June 2016 What is a accounting tratment of exps like share capital issue exps, court fee, transer fee etc. when any existing co. incurred for purchasing new co.?

20 June 2016 when an existing company incurs such expenditure, it can be treated as revenue, at the choice of the said company.

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Querist : Anonymous

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20 June 2016 All exps are treat as a revenue exps? In which head it is book in profit & loss a/c?

20 June 2016 yes. This is for income tax purpose. For accountancy, add all such incidental expenses to the amount of purchase consideration


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