Ankita Srivastava (Professional) (72 Points)
15 May 2015What is the Treatment of Preliminary and Pre-operative Expenses incurred by director in P&L and in BS?
Secondly, is it necessary to write off these expenses? if director dont want then can we leave it?
Nikhil Goyal
(Practicing CA )
(39 Points)
Replied 15 May 2015
| Originally posted by : Ankita Srivastava | ||
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What is the Treatment of Preliminary and Pre-operative Expenses incurred by director in P&L and in BS? Secondly, is it necessary to write off these expenses? if director dont want then can we leave it? |
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You can write off that expenses 20% each year upto five years. Debited to P& L Account and deducted from B/s
Secondly it is necessary to write off
Ankita Srivastava
(Professional)
(72 Points)
Replied 19 May 2015
As it is incurred by director and the amount has not been paid yet to the director. Can we show it as loan from director in liability side under the head other loans and deposit or loan from related party.
Thanks in advance
CAclubindia
