Preliminary Expenses as Promoter's Contribution
This query is : Resolved
CA. Ashish Bihani
(Querist)
17 September 2010
Dear Experts,
One of the promoter has incurred preliminary expenses for the company. Can the same be adjusted against his share of capital?
One of the promoter has incurred preliminary expenses for the company. Can the same be adjusted against his share of capital?
Praveen Sharma
(Expert)
18 September 2010
Preliminary exp. to be woff
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18 September 2010
Adjustment would not be the right method. There has to be physical movement of funds. Eventually, the money would come back to the promoter.
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19 September 2010
Hi Ashish,
Genarally promoters incure expenses on behalf of the Company. So it should be shown as payable to promoters. It can not be adjusted against Share Capital.
Genarally promoters incure expenses on behalf of the Company. So it should be shown as payable to promoters. It can not be adjusted against Share Capital.
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