Pre Incorporation Expenses

This query is : Resolved

Aditya Maheshwari (Querist)
Follow

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.

sivadas chettoor

sivadas chettoor (Expert)
Follow

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

Ankur Garg

Ankur Garg (Expert)
Follow

23 August 2009 agree

Chirag Vasa

Chirag Vasa (Expert)
Follow

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

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

Rakesh Maner

Credible HRM

Jai Solanki

Ashif Cheenikkal

sandhya.v

Subscribe Now

Pre Incorporation Expenses

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