Need to know the treatement of Pre-Operative Expenses and
preliminary expenses. How would you differentiate these
two?
Answer Posted / arun
PRELIMINARY EXPENSES ARE THOSE EXP WHICH ARE INCURRED
BEFORE THE FORMATION OF THE COMPANY. EXAMPLE COMPANY
FORMATION EXPENSES INCLUDING FEES PAID TO PROFESSIONALS .
WHEREAS THE PREOPERATIVE EXPENSES ARE THOSE EXPENSES WHICH
ARE INCURRED BEFORE START OF COMMERCIAL OPERATIONS BY THE
COMPANY.
THE PREOPERATIVE EXPENSES ARE TREATED AS ADEFEERRED REVENUE
EXPENDITURE AND AMORTISED OVER A PERIOD OF 5-7 YEARS.
THE TAX TREATMENT IS AS DONE FOR OTHER DEFERRED EXPENDITURE
AND THE PROFIT & LOSS A/C IS DEBITED FOR THE APPORTIONED
ANNUAL AMOUNT EVERY YEAR.
Is This Answer Correct ? | 5 Yes | 7 No |
Post New Answer View All Answers
Explain a time when you have not met your goal?
PLEASE CLEARLY EXPLAIN WHAT IS MEANT BY TDS,CST,ADVANCE TAX,PF,PT,ESI.CLEARLY AS IF EXPLAINING TO LAY MAN
what is profitability ratio and dividend policy ratio
What is Capital Commitments means?
Do you know compound journal entry?
My question is.. I Received the amount from party through the bank. example. 1. Actual received from party $1000 @ 32.70 = 32,700 baht(service charge included ) 2. Bank Charge 500 baht 3. Given the credit to pary $ 1000 @ 32.50 = 32,500 baht 4. and bank charge 500 debit on party account also. .... For the First three transacion on account bank account dr 32200 bank charge dr 500 party cr 32,500 ex. fluxation cr 200 how can treate the 4th transaction. thanks in advance
What is fair value accounting?
what are cost accounting and its applications?
my assessment says that I must post a dishonoured cheque in the general journal not a specialised journal how would I write that I know bank would be credited but what account would be debited???
what is apply SI post
Journalise- opened a saving a/c with S.B.I. ?
what will be the entry for inventory
What are the advantages of double entry system?
Our is a banking Activity, one person is supplying printing advertisement sheet of our product, whether he is liable to deducte TDS @ 1%
what is lease accounting?? please explain me....