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how we will account the preliminary expenses in journal and
ledger as well as balance sheet?
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Answer / raja umar
General entry for preliminary expense is as under:
1.
Preliminary expenses (Dr) 1000
Cash/Bank (cr) 1000
When you write off
Expenses written off Dr (indirect exp) 500
Preliminary Expenses Cr. 500
Now at the end of year for full adjustments:
Profit & loss Dr. 500 (balance amount which is left)
Preliminary expenses Cr. 500
there are three entries which are to be passed to adjust the
preliminary expenses.
| Is This Answer Correct ? | 27 Yes | 6 No |
Answer / vijaya kumar
Journal : If you wish to written off your Preliminary
expenses
preliminary Exp A/c Dr. 1000
To Cash / Bank 1000
( Being Preliminary expenses written off rs 1000)
Ledger : you should have show the written off amount rs
1000 in debit side of P & L A/c
Balance Sheet : You Should have Asset side under the head
of Miscellaneous Expenditure - preliminary Exp. Written of
rs 1000
Otherwise if you not written off any amount during the
year, you should have only show the opening balance of
amount in assets siede
S. Vijaya Kumar M.Com
| Is This Answer Correct ? | 18 Yes | 8 No |
Answer / vijayram.s
dear vijaya kumar priliminary expends does not depriciate
100% on the same year, u shuld depriciate 20% p.a
the remain answer is currect
Vijay Ram. s
| Is This Answer Correct ? | 8 Yes | 2 No |
Answer / md
Mr.Vijay kumar
You pass the journal entry for preliminary expenses and you
write the narration for write off entry.I dont understand
that which was correct?
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / venkat raman
I think what Raja Umar said is an Exact Answer....
| Is This Answer Correct ? | 0 Yes | 0 No |
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