17 July 2010
A Pvt. Ltd. Co. incurred pre operative expenses of 300000(05 - 06) & this expenses are carry forward on balance sheet as loans & advances for (06 - 07)(07-08)(08- 09)can this is right treatment?
17 July 2010
Pre operative expenses are preliminary expenses (not prepaid expenses) & should not be shown under loans & advances. They are are to be written off gradually after the business starts working.
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