accounts doubt

PROFIT PRIOR TO INCORPORATION MEANS PROFIT THE FIRM OR COMPANY HAS EARNED DURING THE INCORPORATION PERIOD I.E THE COMPANY IS IN WAY OF STATRING WHERE BUSINESS ACTIVITY HAS NOT STARTED

Sneha has given convincing reply.

ru asking or checking

it is not possible b coz prior incorp. company can not sell the product.

As the nam,e itself says about it "Profit prior to Incorporation".

First thing we elaborate is "It does not include losses prior to incorp. Profit prior to Incorp is a capital profit as it is not earned from normal business activities. The treatment is that it should be deducted from capital cost of company.