Pre-operation expenses accounting treatment

Anitha Chandrasekaran (Accountant) (61 Points)

31 December 2013  

Dear All,

Can anyone clearly explain the following:

1. An existing private ltd co expands its business. How wil it treat the expenses incurred by  its new project?

2. How are the revenue exps treated and also provide the accounting entries?

3.How are the capital exps treated and also provide the accounting entries?

4. are the exps preliminary exps or pre-operating exps?

Pls explain

Thanks & Regards