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 must be treated as revenue expenditure and charged to the profit and loss account.
Preoperative expenses incurred before commencement of business that are of a revenue nature should be treated as revenue expenditure and charged to the profit and loss account, rather than capitalized as preliminary expenses.