Write off of Miscellaneous Exp. in Balance Sheet

This query is : Resolved

ankush94 (Querist)
Follow

11 April 2010 Does the Companies Act prescribe a particular number of years to write off Miscellaneous Expenditure (eg.Share Issue Expenses) in the Balance Sheet in Schedule VI?

Rasesh

Rasesh (Expert)
Follow

11 April 2010 There is no specific period prescribed under the companies act. However, most companies write off such amounts in five years.

shakuntala chhangani

shakuntala chhangani (Expert)
Follow

14 April 2010 Dear Ankush, After AS 26 has been made mandatory, miscellaneous exp. will be written off in the year in which it is incurred so there is no question of no.of years.
Regards, CA Shakuntala Chhangani

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

18 August 2010 To comply with section 211(3C) of the Companies Act,1956 the accounting standard 26 ,among others,has to be necessarily followed. So the entire expenditure should be written off in the initial year itself.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok