Treatment of expenses
This query is : Resolved
24 February 2012
Hi,
how to treat pre - incorporation expenses made - Like salary paid, rent, petty cash expenses. these are expenses made before incorporation of the company.
Please advice..
Thanks in advance
how to treat pre - incorporation expenses made - Like salary paid, rent, petty cash expenses. these are expenses made before incorporation of the company.
Please advice..
Thanks in advance
CA Sunil Anwani
(Expert)
24 February 2012
They are to be capitalised and 1/5 of the total expenses can be w/off every year for 5 years.
24 February 2012
is all expenses clubbed together & make a single entry on first day of the company?
CA. Rajesh P. Ahir
(Expert)
24 February 2012
If the other Expanses which has been clubbed are capable of being capitalised than Yas.
Otherwise other expanses has to accounted as Preliminary Exp.
Otherwise other expanses has to accounted as Preliminary Exp.
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