Accounting treatment of exps incurred for purchasing new co.

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Querist : Anonymous

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Querist : Anonymous (Querist)
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.?
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Amol S Joglekar

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Amol S Joglekar (Expert)
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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Querist : Anonymous (Querist)
20 June 2016 All exps are treat as a revenue exps? In which head it is book in profit & loss a/c?
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Amol S Joglekar

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Amol S Joglekar (Expert)
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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