16 March 2013
If a branch is going to close what will be the treatment of Pre-Operative exp.? Whether all exp. be written off once or in 5 installments?
What is the procedure if same case is of a pvt. ltd. company?
16 March 2013
Pre-operative expenses are always capitalized. So at the closure of the branch; these would be debited to capital account. . In case of private limited company; it would be transferred to miscellaneous expenses which would be ultimately adjusted from the reserves; if any.
CAclubindia
