Answer Posted / prabakaran

Preliminary Expenses are to be written off out Securities
Premium Account or it may be written off out of the Profit &
Loss A/c gradually over some period. The balance left of
preliminary expenses is to be shown in the asset side of the
balance sheet of the company under the heading of
‘Miscellaneous Expenditure'.

preliminary expenses example;expenses incurred for get
company register, and underwritting commission.that,s why
the preliminary expenses coming under asset side.

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