04 July 2008
hi, i have a doubt regarding the incorporation and commencement of business
1 Any profit earned by a company before incorporation of business is considered as pre incorporation profit however, 'if a public company earned any profit before commencement of business certificate and after incorporation' then what shall such profit be called.
2 can u give me clear information of about when a capital workinprogress and any expenditure earned before or at the starting of the business be considered as capital workinprogress (RESOLVE MY QUERIES PLEASE)
04 July 2008
1. Profit earned before pre-incorporation is called, pre incorporation profit, but profit earned after obtaining certificate of commemncement of business is called Profit from business.
2.Expenditure incurred on construction of a capital asset is called Capital work in progress.
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