Answer Posted / pavan kumar

preliminary expenses are the expenses which accure at the
time of starting of the business as registration fees.
basically it is amortize as per decided time by the company
and at the time when the expense accure it will treate as
current asset.and written off every year from the profits of
the business.
Ex:- 18000/- expenses for Incorporation Fee
Preliminary Expenses A/c (Under Group Misc Expenses (Asset)
Preliminary Expenses Written off A/c (Under Group Indirect
Expenses)
18000/5=3600
1)Payment Entry
Preliminary Expenses A/c Dr 18000
To Cash/Bank A/c 18000/-

2)Journal Entry
Preliminary Expenses Written off A/c Dr 3600/-
TO Preliminary Expenses A/c 3600/-


Preliminary Expenses Written Off A/c 3600/- will reflect on
Profit& Loss A/c (Indirect Expenses Side)
Preliminary Expenses a/c 14400 will reflect on Balance Sheet
(Asset Side)

Why in partnership fundamental question will add Partnership salary for the year and per month salry add in the cr. Side of the p/l app a/c

1844

---

what is cost accountinp

2299

---

what are the financial ratios that a manager see in accounting?

1991

---

please tell me short cut method in maths as well as in english for correcting the error for the post of clerck in bank exam

2347

---

What is a Balance Sheet & Profit & Loss Account?

1953

---

what is ledger account

2110

---

Short Answer on _________Accounts Receivable

1924

---

as per partership firm TDS receivable at the end of goes to partners current account, but at the multinational company how pass TDS entry pass, where is it is goes

4074

---

what is purchase consideration?

2174

---

what type of questions are asking for fund administration???

5445

---

example of SOP

1934

---

Short Answer on __________Leverage

2162

---

What is re-financing in Letter of Credit settlement

2022

---

Is commodities transaction tax a permissible business expenditure? Explain

2214

---

what is budgetory control and what are the types

2442

---