Question ID : 104

Pre incorporation exp. of pvt.ltd co borne by Public company

Dear Sir,
A Public company is gog to ur the registration exp. to ROC for floatg a Private Limited company. The Public company is gog to have 99% of shareholdg the private limited company.Now can this expenditure be booked the books of Public company or shall it have to be shown as advance, vment? What will be the accountg tratment private limited company? which section companies Act deal with this aspect? please help me out. '

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