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pre-incorporation expenses and income

what do include?

Didn't find your answer?

ok i know i should know this but...

company incorporated 1 April 2019 but the 'business' started with product development costs paid for by director back in late 2018. I think I'm ok with some pre-registration expenses being included but there are also some 'testing the water' sales before the incorporation date as well. Do i just bring it all in on day 1 and go from there? 

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By Cheshire
22nd May 2020 14:17

Quote:

ok i know i should know this but...

company incorporated 1 April 2019 but the 'business' started with product development costs paid for by director back in late 2018. I think I'm ok with some pre-registration expenses being included but there are also some 'testing the water' sales before the incorporation date as well. Do i just bring it all in on day 1 and go from there? 

Is this in relation to a band who were earning income before their incorporation that you asked about bringing in 'pre-trading income and expenditure' on another forum, so you have tweaked the details a little because you didnt like the answer?

How much in sales? Where is that income?

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By LAURA BUTLER
22nd May 2020 14:33

im sorry I have no idea what you are on about a band - so im going with no to that
im not sure yet how much it is im still going through it but itll be a couple of thousand it was prototypes and early product designs sold at shows and markets. its all in a bank account as yet unaccounted for

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Replying to LAURA BUTLER:
By Tim Vane
22nd May 2020 14:51

In what bank account is the money sitting and to whom does that bank account belong? Who made the sales? (Hint: it can't be the company if it did not exist). When you've answered who sold it you've probably answered who incurred the expenses. When you've answered that you'll know where your income and expenses should go. I doubt it's the company.

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By Accountant A
22nd May 2020 14:47

A company can't make sales before it exists.

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