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
What is accounting & why it is used?
Define bills receivable?
Tell me do you think accounting standards are mandatory and why?
what are doucement required under registration of properity firm. give the answer breif
Explain me have you ever heard about tds, what it is?
Which accounting applications are your familiar with?
IS THERE ANY DIFFERENCE BETWEEN PAID UP CAPITAL AND PAID IN CAPITAL?
Under what type of account do the unearned revenues fall?
What are accounting rules called?
hi...this is chaitanya fresh bcom computer graduate i need job in finance feild will i get in genpact, deloitte, bank of america, or any other mnc...?
I TRANSFERRED A STOCK OF RS. 100.00 FROM HEAD OFFICE DELHI TO MFG. UNIT OFFICE AT HARYANA AGST FORM F.AT BRANCH GOODS ARE PROCESSED AND ADDED VALUE OF RS. 80.00 AND TRNF BACK TO DELHI HEAD OFFICE FOR RS. 180.00 AGST FORM F FROM HARYANA . AND HEAD OFFICE SOLD THIS TO PARTY AT RS. 200.00 . I WANT TO KNOW HOW TO MAKE ACCOUNTING ENTRIES IN BOTH BOOKS HEAD OFFICE AND BRANCH OFFICE. TO SETTEL ACCOUNT AND TO CONSOLIDATE THE BOOKS AT THE END OF YEAR.
as muthoot finance is a finance co,so what would be pattern of asking in relation to finance and a/c question?will it be basic or general or it would be market related situation?plz if help me anybody...
is we can prepare any account for partnership in tally
What is process of Vendor Reconciliation and which items will be Add and Less from ad per customer books likes step by step 1-Credit Note shown in vendor a/c but not booked in our a/c- Add or Less 2-Debit Note not shown in vendor a/c but booked in our a/c - Add or Less 3-Invoices not booked in our a/c but shown in vendor a/c- Add or Less 4-Payment booked in our books but not shown vendor- Add or Less If our balance is plus or minus rules is same. like 20000, (-20000) Sir, Provide your mobile n for clarify
how in the big companies the budget are prepared and controlled?