GST Course

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Abhijeet Singhal (Senior Engineer)     09 June 2011

How to show Losses accumulated in balance sheet


I am doing a project with a company which is to start its business in coming months. I am preparing its balance sheet for coming years for project and financial planning. In the first two years, it is estimated that they are going to be incurring losses and from third year only they will earn some profit. 

My queries are:

How to show the loss incurred on the balance sheet? Under which head?

Does the company will be able to reduce its tax liability in the third year because of the losses earned earlier? If yes, how it could be done?

Looking forward to the responses..


Abhijeet Singhal

 1 Replies


Edwin (Article)     09 June 2011

The  expenses upto the starting of the company will be shown under the head Miscellaneous Expenditure - Prelimnary Expenses

And the loss upto the third year will be accumulated in the Profit & Loss Account
You will be able to claim set off of  the loss of previous years

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Start a New Discussion

Popular Discussion

view more »

Subscribe to the latest topics :
Search Forum:

Trending Tags