25 February 2010
Expenses spent before incorporation of a private limited company will be debited to preliminary expenses. will these include expenses in setting up of the office, buying of computer ect?
25 February 2010
Thanks. Actually i would like to know particularly regarding: Will it be possible to show amount spent in setting up the office and buying the computer etc as part of share capital? Please note that the company has already applied for name reservation with paid up capital of Rs 5,00,000 and the expenses have exceeded or is almost near to 5,00,000. Otherwise also advise me eventhough the expense has not exceeded Rs 5 lac.
25 February 2010
It is possible to show it as a part of share capital. But the subscription amount shown in the MOA would have to be collected in cash/cheque.
You may first collect the amount and then return the amount back to the promoters if they have provided such amount for the office.
CAclubindia
