ACCOUNTING TREATMENT

capital expenditure

it is capital expenditure

PRELIMINARY EXPENSES AND IT IS CAPITAL EXPENDITURE.

capital expenditure 

Such expenses should be booked under the head 'Preliminary Expenses' and should be written off over a period of 3 to 5 years. 

So basically the treatment is very akin to what we give to deferred revenue expenditure. 

Cheers !

CMA Hemant Joshi

it comes under preliminary expenses

and it should be written off over a period of 5 yrs(equal installments)

If you have enough profit for the current year, you can treat, the whole amount as exenditure.

To increase the profit in P&L account, the companies may take as "Preliminary Expenses".

It is not compulsory to treat under - CAPITAL EXPENDITURE.

It should be shown under the head " Preliminary Expenditure" and should be written off over  the period of 3/5 years.

it is a preliminary expenditure and should be writtn of over 3-5 years

under which head revaluation reserve is taken 

stamp duty paid for increse authorised capital is in nature of deffered revenue  expenditure and it is writt of in five years