08 October 2008
Last year balance sheet we had shown as pre-operative expenses but this financial year we are shutting down the operations of the company so can we show the previous year pre-operative expenses as loss pls let me know
08 October 2008
It can be shown as a loss and can be routed through the profit and loss account. But it will not be considered as a business expenditure for the purpose of income tax since the operations of the company are shut down.
CAclubindia
