how to account pre incorporation expenses
Answers were Sorted based on User's Feedback
Answer / keerthi d&
Pre incorporation expences are,The expences incurred before
the company or a business entity's incorporation
(Registration).it can be Expences incurred at the time of
developing ideas for the establishment of a business
concern,expenditure incurred on the process of registration
of the concern etc..
pre incorporation exepences are to be recorded under the
head preliminary expences& losses at the assets side of the
balance sheet.these are deductable (to be set off)in the 5
subsequent years from the year of establishment. of
business.
Is This Answer Correct ? | 53 Yes | 18 No |
Answer / ashok kumar
Incorporatoion Exp. Account under Preliminary Expenses and
claim this as exp in subsequent 5 year
Is This Answer Correct ? | 40 Yes | 12 No |
Answer / tapan sanghvi
all the expenses pertaining to the pre incorporation part
of the company should be written off in the first year of
business as per para 55(d) of AS 26 "Intangibles".
as per income tax act, section 35D permits write off in 5
years.
hence, there will be a variance on which deferred tax asset
should be created on the difference.
Is This Answer Correct ? | 25 Yes | 10 No |
Answer / vishu
Only Capital expenses is eligible for deduction.
Is This Answer Correct ? | 1 Yes | 15 No |
what is debit and credit?
1 Answers Genpact, Infosys, Nainital Bank, Satyam,
Whta is mean by capital budgeting
CAN C FORM AND F FORM BE ISSUED FOR SAME JOB WORK CONTRACT CONSIGNMENT
paid vendor to RS 15000 and incentives of RS.5000 and deducted Rs.3000 as penalty so finally paid to vendor is Rs.17000. please let me know the journal entry for this.
0 Answers Real Group Of Companies,
The Lessee's right to recover the short working is related to
case flow
what is t code of gr/ir report?
how to treat investment fluctuation fund in case of death of a partner
Under the accrual basis of accounting, when revenues are reported in the accounting period?
when we file Vat audit report
if a employee basic salary is rs. 8000/- in march 2010 his total days of salary is 15 then what will amt comes in his f.p.f.(8.33%) account
define SOX