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Answer Posted / 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.
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