pre-operative expenses treatment

Hai

how to treat pre - incorporation expenses made -  Like salary paid, rent, petty cash expenses. these are expenses made before incorporation.

Regards

N Dayananda

Hi Akhil,

You have given absolutely correct answer.

Capitalization with the Fixed assets on proportianate basis is the better way of accounint instead of

showing in the B/S.

Originally posted by : Guest
	what is pre-operative exp is there any diff between priliminary and pre-operative exp

Pre-operative expense are the expense whch are made after incorporation and before commencement of business and preliminary expenses are the expenses made before incorporation

Dear learned people,

Kindly help me with the pre operative expenses of  a private company. Please elaborate me what is the accounting treatment for such expenses? There is no fixed asset for the company, it is just few expenses like remuneration and day to day  expenses.

Thank you in advance