Pre incorporation rent

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Hello All,

I have aquery regarding the rent expense incurred before incorporation of the Company.Company has entered rent deed on 13/03/2014 & incorporated on 25/03/2014.So now please help, that we need to book expense from rent agreement date or from incorporation.And also plese tell that it is revenue expense, but whether we need to capitalise it as pre incorporation expense.And also please tell that which part is pre incorporation expense & which is preliminary expense.The company is Private Limited Company & Rent is 4000 pm????

Thanks

 

Replies (1)

Pre Incorporation expense will be rent before company registration

The rent starting from the date of company incorporation is revenue expense.

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