PRE OPENING EXPENSES

If I start new restaurant before start I spent money on pre opening like tiles, painting, plumbing, electric wiring, mason , repair and Maintenance and renovation. 

Where it will enter pre opening expenses in tally?

Is it capital expenditures?

It will enter in asset side.

Please suggest me.

Replies (2)
Quick Summary
This discussion explores how to handle pre-opening expenses for a new restaurant in Tally. It clarifies that these costs, such as tiles, painting, and plumbing, are typically treated as capital expenditures and recorded on the asset side. You can set up separate ledger accounts for each expense type under fixed assets and use appropriate voucher types for recording. Alternatively, some suggest disclosing them under 'Miscellaneous expenditure' as deferred revenue expenditure.

In Tally, you can enter pre-opening expenses for your restaurant as capital expenditures. Create separate ledger accounts for each type of expense under the fixed assets category. Record the transactions in the appropriate voucher type (e.g., Payment Voucher, Journal Voucher) and allocate expenses to specific assets if needed. 

Let's say you have incurred the following pre-opening expenses for your restaurant:

  1. Tiles - Rs. 10,000
  2. Painting - Rs. 5,000
  3. Plumbing - Rs. 8,000
  4. Electric wiring - Rs. 12,000
  5. Mason work - Rs. 7,000
  6. Repair and maintenance - Rs. 6,000
  7. Renovation - Rs. 15,000

To record these expenses in Tally, you can create ledger accounts for each expense under the fixed assets category, such as "Pre-opening Expenses - Tiles," "Pre-opening Expenses - Painting," and so on.

Next, you can enter the transactions using the appropriate voucher type. For example, if you made a payment for plumbing expenses, you can use the Payment Voucher to record the transaction. Enter the amount of Rs. 8,000 under the "Pre-opening Expenses - Plumbing" ledger account.

Repeat this process for each expense, allocating them to the respective ledger accounts. These expenses will be treated as capital expenditures and will appear on the asset side of your financial statements.
For more detailed information, visit Swipe Blogs.
 

Pre opening expenses are generally disclosed under Miscellaneous expenditure .A DEFEERED REVENUE EXPENDITURE.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details