Question

How is profit prior to incorporation treated in account ?

Answer 1

Answer:

Thus, any profit/loss made before the incorporation is known as “Profit (Loss) Prior to Incorporation” which is treated as a capital profit and the same cannot be distributed as business profit. ... The same is to be transferred to Capital Reserve or may be adjusted against Goodwill.

Explanation:

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Answer 2

hello dear friend hope it help you xd