Accounting for expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2013 Sir,
I have commenced new business of manufacturing machineries, which takes more than one year of time to get manufactured.

My query is the accounting treatment of all the expenditures incurred by me in a year, if i accounts all the expenses in same year the there will be loss as i have still not booked by sales.

Also as per matching concept, expenses is to be matched with revenue.

what should i do ?

CA Parul Saxena

CA Parul Saxena (Expert)
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31 August 2013 You must record all the expeneses even if there is no revenue generated...

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2013 Then i have to file my balance sheet in loss ?
also, as per your advice, against my expenses, i am not recording any revenue which i will generate in next year when my machinery will be sold.

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