Treatment of expenses

This query is : Resolved 

24 February 2012 Hi,
how to treat pre - incorporation expenses made - Like salary paid, rent, petty cash expenses. these are expenses made before incorporation of the company.

Please advice..

Thanks in advance

24 February 2012 They are to be capitalised and 1/5 of the total expenses can be w/off every year for 5 years.

24 February 2012 is all expenses clubbed together & make a single entry on first day of the company?


24 February 2012 If the other Expanses which has been clubbed are capable of being capitalised than Yas.

Otherwise other expanses has to accounted as Preliminary Exp.



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