07 September 2009
A company has been newly incorporated in India which, in the previous year has not commenced it's operations. Since operations have not yet begun, a P & L A/C needn't be prepared. However, w.r.t Preliminary Expenses/Pre-operative expenses, are we required to preprare a P & L and write off the same, or can we carry it forward to the Balance Sheet. Please quote relevant sections in this regard.
07 September 2009
Company neednot prepare its P&L a/c as it is not started its operations.You can show the preliminary expenses/pre-operative expenses in Balance Sheet under the head Misc. Expenditure.
07 September 2009
Subscribers to the memorandum still have not paid all amount due as on the date of closure of financial statements. How does this get disclosed in the Balance Sheet?