Financial statement of a newly incorporated company
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 October 2013
Dear Sir/Mam,
A company has been incorporated on 29.03.2013.
Please give clarification on following items:-
1) Do we have to write off Preliminary expenses of Rs 12000 completely?
2) If point 1 is correct Reserves will be negative 12000.
3) In That case will the balance sheet total will be 88000 Rs only?
Please help me on this.
Regards,
A company has been incorporated on 29.03.2013.
Please give clarification on following items:-
1) Do we have to write off Preliminary expenses of Rs 12000 completely?
2) If point 1 is correct Reserves will be negative 12000.
3) In That case will the balance sheet total will be 88000 Rs only?
Please help me on this.
Regards,
31 October 2013
if company not yet started commercial operations dont write off preliminary expences
.
.
if company started commercial operations you can writeoff total preliminary expences in that year
.
.
it is okay even your reserves and surplus goes to negative..no problem with total of balancesheet also
.
.
however lets see other members opinions
.
.
if company started commercial operations you can writeoff total preliminary expences in that year
.
.
it is okay even your reserves and surplus goes to negative..no problem with total of balancesheet also
.
.
however lets see other members opinions
31 October 2013
Agreed with Ganesh Bhai.
How does it matter whats the balancesheet total. Don't confuse companies account treatment with tax treatment. It may be disallowed in tax but no problem with companies act.
How does it matter whats the balancesheet total. Don't confuse companies account treatment with tax treatment. It may be disallowed in tax but no problem with companies act.
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