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expenses incurred in the formation of the company are show
in :
1)debit side in the profit and loss a/c
2)as an assets in balance sheet
3) as an liabiliies in balance sheet
4) credit side in profit and loss a/c
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Answer Posted / jyothi
as an asset in the balance sheet
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The following are the list of Balances of SUNSHINE Company as at 1.2.2012 RM Land and building 450,000. Furniture and Fittings 35,000. Office Equipment 25,000. Motor Vehicles 75,000. Inventory 5,000. Trade Receivables 12,000. Trade Payables 8,000. Bank Loan 200,000. Bank 13,000. Cash in Hand 1,000. Capital 408,000.
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