02 July 2012
If a Pvt. co. has purchased a computer before incorporation and the payment is made by the director and bill is issued in favour of company (all before the date of incorporation). Then how the entries will me made? can it be charged to preincorporation expenses or it should be first charged to pre incorporation and then reversal entry entry made debiting the asset and crediting the pre-incorporation? does it require any procedure or board's resolution?
CAclubindia
