audit report

This query is : Resolved

Laxmikant agrawal (Querist)
Follow

05 February 2011 dear sir

my company has not started its commercial trading activity till the end of 31 march only it has purchased stock in trade for trading (i.e.no sales has been made till date after it's incorporation) whether it for accounting it will be deemed that company has not started its operation wheather we have to prepared profit & loss account if no how we will show purchase & closing stock in books of accounts if yes than wheather we have to expensed all the pre-operative expenses in the current year profit & loss account.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
Follow

06 February 2011 Although there is no sale, books including P/L and BS is to be preapared. Purchase has to be taken as inventory, exp may be deffered.

Message likes : 1 times

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

06 February 2011 Agreed with Bhagt Ji. However pre operative expenses should be charged to p & l account fully so as to comply with Accounting Standards and compliance of 211(3C) of the Companies Act,1956.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SHYAM SUNDER GULATI

ARUP BHATTACHARYA

Ahamed Kabeer

CA Jyoti Singh

Nayan shetty

Subscribe Now

audit report

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA