Question

2) Share issue expenses written off should be charged to
a) Trading Account
c) Post incorporation Profit
b) Liabilities
d) None of these​

Answer 1

Answer:

Explanation:

143.The fundamental rethinking and radical design of business process

a) business process reengineering

b) six sigma

c) quality quality

d) total quality management​

Answer 2

Share issue expenses written off should be charged to c) Post incorporation profit.

Definition of Share issue expense:

Share issue expenses are those expenses incurred in the process of issue of shares to general public like payment to the underwriter, stockbrokers, etc., which is known as share issue expense.

What is post-incorporation profit:

• The post-incorporation profits are those profits that are earned by the company after the company gets incorporated, the profit earned before that will be treated as pre-incorporation profits.

• The expenses related to the incorporation of the company and expenses regarding the company's operation will be charged against the post-incorporation profit.

• Post- incorporation expenses like director's fees, director's remuneration, debenture interest, dividend payment, etc.

Thus, the share issue expenses will be charged against the post-incorporation profit.