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why do we take preliminary expenses into asset side?

Answer Posted / gangadhar das

Preliminary Expenditure are those expense which occured
before the commencement of a company, that's y it shown
under Miscellaneous expenditure on the assets side of B/S.

Preliminary Exp:- expenses incurred to register a company,
and underwritting commission etc.

Is This Answer Correct ?    12 Yes 13 No



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