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maintenance of books of accounts before incorporation of co.

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31 December 2010 it is mendetory for the company to maintain books of accounts before it come in to existaance? if yes what is the treatment of expenses incurred by the promotors?

31 December 2010 Pre incorporation expenditure may be deffered. Books of accounts is required so that audit of this expenditure may be carried out.

01 January 2011 It is not practicable to maintain the Books of Accounts of an entity which does not exist. Such expenditures may be recorded after incorporation as suggested by Mr Bhagat.




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