22 August 2009
There is a company where the name was approved by the ROC and the director of the company incurred expenses in the approved name but before the date of incorporation of the company. What will be the treatment of the said expenses? Show we debit in the profit & loss a/c or be capitalised as goodwill or some other place.
22 August 2009
It is part and parcel of the pre-incorporation expenses which needs to be shown in the balance sheet and may be written off over a period of time. sivadas chettoor B.com FCA LL.M siva208@yahoo.com
24 August 2009
after AS 26 come into existance no preliminary expenses are allowed to be capitalised and needs to be charged off immediately to profit and loss account.
You should immediately charge off such expenses to profit and loss account
CAclubindia
