Pre-incorporation revenue expense

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priya (Querist)
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11 July 2013 Company X Ltd (Private Co) purchased business from Y Ltd.(Only Name i.e Goodwill) and now establishing it like Construction of Factory, Office Etc.
Now my Question is while constructing Factory and other things Co incurred some revenue Expenses Say Vehicle Expenses, Electricity Expenses, General Expenses What treatment should be given to these expenses in Books of A/cs?

Can we called them as Premlimnary Expenses?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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18 July 2013 What ever expenses before starting the operation and after company formation can be treated as Pre operative expenses

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