Pre-operative expences

This query is : Resolved 

24 December 2012 Pre-Operative Expenses - how to Show and maintain in income tax and accounts ? and how to pass entry in tally ?

25 December 2012 Pre-operative expenses should be apportioned on your fixed assets on suitable basis. Pass following entry in tally

Asset a/c Dr. xxxx
To Pre-operative Exps. A/c xxx

26 December 2012 Pre-operative expenses means those expenses done before the formation of the company.so it will be knows as a preliminary expenses and it will be capitalised in the books of accounts and proportionate deductible as per law.
The entry should be passed as below:-

preliminary expenses a/c- dr.(Capitalised value)
To.cash / bank a/c -cr.
after that
preli. expenses W/o-dr.(Proportion value)
To.Preliminary Expenses-cr(Capilised)




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