Question for Everybody?

upto trail run all the exp capitalise , & any income from this shall be deduct

Dear Mam,

Till the commencement of commercial production/activities, ALL EXPENSES ARE TO BE CAPITALIZED.

Dear Mam

All the expenese are to be Caplitalised till the normal routine  bussiness.

if there is any income toooo then  it sholud also be capatilised

To the best of my knowledge...

(i) Any expenditure can not be charged p&L account and the same shown as "Pre-operative expenditure"  in the Balance sheet and can be write off over a period after commencement of the business.

(ii) The Depreciation is to be shown separately and charged to P&l account, since it is mandatory.
 

Originally posted by : mohan
	To the best of my knowledge... (i) Any expenditure can not be charged p&L account and the same shown as "Pre-operative expenditure"  in the Balance sheet and can be write off over a period after commencement of the business. (ii) The Depreciation is to be shown separately and charged to P&l account, since it is mandatory.

agree with mohan

Originally posted by : mohan
	To the best of my knowledge... (i) Any expenditure can not be charged p&L account and the same shown as "Pre-operative expenditure"  in the Balance sheet and can be write off over a period after commencement of the business. (ii) The Depreciation is to be shown separately and charged to P&l account, since it is mandatory.

yes this is the to th point answer. agree with mohan

Hello to all and thanks for answering but want to know if the project work is till continuing and the deadline given to the bankers from whom the loan is taken is 31st march but the formal operations will start from may?

!.What should be done expenses should be capatalised till march or May?

2.How to write off the expenditure i.e For how many years?

Trial period Expenses Should be capitalise.it should be start from the date of when the product was invented till the date of approval or manufacturing of the product