Regarding Accounting treatment for the expenses borne by Managing Director before Incorporation

This query is : Resolved

Francis George (Querist)
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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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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.

Francis George

Francis George (Querist)
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31 July 2023 Can any other costs incurred in bringing the business into function include advances wages paid to worker & their W C Policy

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 July 2023 Yes include such expenses.
Advance keep it as advance in the books.

Francis George

Francis George (Querist)
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01 August 2023 Thank You Sir for the help

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2023 You are welcome...
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