How to Account my expenses which is actually incurred before commencing Business.. Those Expenses actually not comes under PRELIMINARY EXPENSES and the same was expended by me for Starting my Company and which includes:
1. SALARIES
2. STATIONARIES
3. PETTY EXPENSES
4. RENT
5. ADVANCES
How can I account all those expenses in My Company? please help me.
and One More thing is that... At which date I can record all those Expenses? is it possible to Account the same on actual date or is it mandatory to Account after the commencement date?
Thanks in Advance.
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PRE EXPENSES NOT COMES PRELIMINARY EXPENSES
Replies (9)
You can seperate expenses under two heads
preliminary exp &
pre-incorpiation exp
But it requires just a month to incorporate a company
preliminary exp &
pre-incorpiation exp
But it requires just a month to incorporate a company
But all those Expenses were Incurred before 2,3 months Prior to Incorporating the company.. And all those Expenses were Spended by One it's DIRECTOR himself..
Then you can book it under the pre -incorporation expenses
Okay and One More Doubt...
Is it possible to Record the Expenses on actual dates? or
After Commencement date?
Is it possible to Record the Expenses on actual dates? or
After Commencement date?
Expenses has to be booked on actual dates and it can be deferred to subsequent period as per the provisions of companies act,2013
Can I show all those expenses in P&L in The Current year in which the Expenses were actually incurred?
Expenses should be booked under deferred revenue exp under asset.Subsequently it should be taken into PL for 5 years in equal proportion
Can you give the date of incorporation and month of expeses incurred
Can you give the date of incorporation and month of expeses incurred
The Expenses were Incurred in Months of September, October, and November but the COI was granted in the Middle of December
and all those Expenses were Spended by the Director through his personal account , is it possible to Record the Expenses as Loan From Director ?
and all those Expenses were Spended by the Director through his personal account , is it possible to Record the Expenses as Loan From Director ?
You can book it as loan.
But it is a debatable issue.
Without incorporating company ,how can you issue offer letter and appoint staff & how can you make rent agreement ??
When the company it self not incorporated then how spent for salary,rent etc..
Preliminary exp means only incurred for incorporing exp (For accounting purpose you can debit entire exp or you may book in asset and for tax purposes you must refer 1/5th for 5 years)
Other expenses will be under pre-incorpiation exp/Pre-operative exp but it is debatable issue
But it is a debatable issue.
Without incorporating company ,how can you issue offer letter and appoint staff & how can you make rent agreement ??
When the company it self not incorporated then how spent for salary,rent etc..
Preliminary exp means only incurred for incorporing exp (For accounting purpose you can debit entire exp or you may book in asset and for tax purposes you must refer 1/5th for 5 years)
Other expenses will be under pre-incorpiation exp/Pre-operative exp but it is debatable issue
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