give me the entries of incorporation exp
Goodwill A/c Dr.
To Equity Share Capital
as per as 10 when we giving consideration to the promoters what is the problem
2 Replies
Amir
(Learner)
(4016 Points)
Replied 06 January 2010
Dear Prateek,
GOODWILL CANNOT BE RECOGNISED IN THIS MANNER.
INCORPORATION EXPENSES DOES NOT CONSTITUES GOODWILL
INCORPORATION EXPENSES CAN BE REIMBURSED TO PROMOTERS AND AGAINST THAT MONEY SHARES CAN BE ISSUED TO THEM BUT IT CAN NEVER BE TREATED AS GOODWILL..
INCORPORATION EXPENSES CAN WRITTEN OFF IN BOOKS OVER A PERIOD AND SO LONG NOT WRITTEN OFF IT WILL COME UNDER "MISC. EXPENDITURE"
nicky
(Ca student)
(112 Points)
Replied 07 January 2010
And incorporation Exp can be write off as create preliminary exp A/c from the books.....
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