Regarding Accounting treatment for the expenses borne by Managing Director before Incorporation
This query is : Resolved
31 July 2023
Hello, Can anyone help me in this query,
How to record following Expenses which were borne by Managing Director/Promoter in the Books of Pvt. Ltd. Company:
1) Registration fees of Private Limited company
2) Advance to salary/worker
3) Site Expenses
4)Petrol/ diesel Expenses
5)Room Deposits
6)Workmen's Compensation Policy
Note:
Incorporation Dated of Private limited Co. is 05/06/2023
Date on which Bank Account was opened for operation for Pvt Ltd.20/07/2023
There was a delay in getting bank account opened hence few expenses for the month of June & July were paid from MD personal accounts.
How to record following Expenses which were borne by Managing Director/Promoter in the Books of Pvt. Ltd. Company:
1) Registration fees of Private Limited company
2) Advance to salary/worker
3) Site Expenses
4)Petrol/ diesel Expenses
5)Room Deposits
6)Workmen's Compensation Policy
Note:
Incorporation Dated of Private limited Co. is 05/06/2023
Date on which Bank Account was opened for operation for Pvt Ltd.20/07/2023
There was a delay in getting bank account opened hence few expenses for the month of June & July were paid from MD personal accounts.
31 July 2023
Reimburse the expenses as preliminary expenses to the MD.
Preliminary expenses examples are those incurred Prior to the creation of the company, the entrepreneurs. Postage taxes paid. Any other costs incurred in bringing the business into function.
Preliminary expenses examples are those incurred Prior to the creation of the company, the entrepreneurs. Postage taxes paid. Any other costs incurred in bringing the business into function.
31 July 2023
Can any other costs incurred in bringing the business into function include advances wages paid to worker & their W C Policy
31 July 2023
Yes include such expenses.
Advance keep it as advance in the books.
Advance keep it as advance in the books.
01 August 2023
Thank You Sir for the help
01 August 2023
You are welcome...
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