Interested to Buy Any Domain ? << Click Here >> for more details...
why do we take preliminary expenses into asset side?
- 5 Answers
- 44588 Views
- Infosys, I also Faced
- E-Mail Answers
Answer Posted / h.r. sreepada bhagi
Preliminary Expenditure - is shown under Miscellaneous
Expenditure (To the Extent Not Written off of Adjusted) on
the Assets side or under Application of Funds in the Balance
Sheet. It represents the amounts spent on getting the
company formed & registered & the benefits of this is spread
over the life of the company. If this is charged to the
Profit & loss Account in the year when it's incurred, True
Profit/Loss is not arrived at for that year, as the expenses
are overstated.
In order to even this effect, the expenditure is written of
over a reasonable period of time (Eg. 5 yrs. or 10 years).
Since it is in the nature of an intangible asset, it will
appear as an asset, till it is fully charged off to Profit &
Loss A/c.
| Is This Answer Correct ? | 76 Yes | 13 No |
Post New Answer View All Answers
Explain what are the accounting events that are frequently involved in compound entries?
which report give the data of GL with materials details in sap?
1)What is E-1 Sales (Sales in Transit) Full Guidence From Issue to receipient. 2) What is F Form How Are procedure
Tell me what are the three factors that can affect your cash flow and business profitability?
Define bills receivable?
what is the procedure to appoint an Austrlian citzen as indian company director...
difition of reserve & surplus
2. A budgeted profit statement of a company working at 75% capacity is provided to you 2 below, Sales 9,000 units at Rs. 32 Rs. 2,88,000 Less: Direct materials Rs. 54,000 Direct wages 72,000 Production overhead: fixed 42,000 variable 18,000 1,86,000 Gross profit 1,02,000 Less: Administration, selling and distribution costs: fixed 36,000 varying with sales volume 27,000 63,000 Net profit 39,000 You are required to: (a) Calculate the breakeven point in units and in value. (b) It has been estimated that: (i) if the selling price per unit were reduced to Rs. 28, the increased demand would utilise 90% of the company's capacity without any additional advertising expenditure, and (ii) to attract sufficient demand to utilise full capacity would require a 15% reduction in the current selling price and a Rs. 5,000 special advertising campaign. You are required to present a statement showing the effect of the two alternatives compared with the original budget and to advise management which of the three possible plans ought to be adopted, i.e., the original budget plan or (i) above or (ii) above. (c) An independent market research study shows that by spending Rs. 15,000 on a special advertising campaign, the company could operate at full capacity and maintain the selling price at Rs. 32 per unit. You are required to: (i) Advise management whether this proposal should be adopted.
What can be done incase of excess payment of TDS Remittence than the actual amount? Is there any adjustment towards the excess amount with the upcoming TDS payment? Reference of last quarter challan should be shown while adjusting in next quarter?
how to calculate the per unit cost of production
what is service tax & excise? How will it be charged?
How to make a vat entry in books including setoff?
What are the columns of a journal?
Differentiate public and private accounting?
I have transferred the Plant & machines to our Branch which are located in other state. plz told me how can i show the Machin stk trfr amt in return?
