Pre incorporation expenses & pre operative expenses

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ARPIT AGARWAL (Querist)
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02 January 2013 a cement packaging company incorporated in july 2012, it has incurred formation expenses of Rs. 50000, after incorporation company has not started its business operations till mar,31,2013 sice construction of building & plants was going on...company has incurred office expenses during JULY-12 to MAR.13 amounting to Rs.100000(on salary of employees & other office expenses)& capital expenditure Rs. 5000000 on construction of plant & building etc.

what will be accounting treatment of RS. 50000,RS.1000000, & RS.5000000 in fin. statements for 2012-13

please explain

Amol S Joglekar

Amol S Joglekar (Expert)
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02 January 2013 50,000 Miscellaneous Expenses(Pre incorporation)
10,00,000 Pre operative expenses.
50,00,000 Capital work in progress.

ARPIT AGARWAL

ARPIT AGARWAL (Querist)
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02 January 2013 under which head these items will appear in balance sheet as on 31.3.2013?
sir plz explain the difference between pre incorporation & pre operative expenses..

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