Praoperative Expenses

[guna ch]

Dear Sir/s

Kindly any one advice me about what is preoperative expenses, is it equals to misc.exp/prelimenary exp. what is the treatment of preoperatravie exp.

[CAGOPALJI AGRAWAL]

These expenses might be incurred before commencement of business but in the nature of revenue exp. and has to be debited to Profit & Loss Account.

AI Summary

Preoperative Expenses Clarified: Treated as Revenue, Debited to Profit & Loss Account, Not Miscellaneous or Preliminary Expenses. A user inquired about the nature and treatment of preoperative expenses, questioning whether they are equivalent to miscellaneous or preliminary expenses. The response clarified that preoperative expenses are incurred before the commencement of business operations. These expenses are considered revenue in nature and should be debited to the Profit & Loss Account.