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 ?
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 ?
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.
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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