Interested to Buy Any Domain ? << Click Here >> for more details...
what is the meaning of preliminary expenses and how you
shown in balance sheet
- 50 Answers
- 242509 Views
- Banking, BPL, CA, Capital IQ, Chartered Accountant, First Midwest Bank, GE, Glass Wall Systems, Ocwen, Siemens, I also Faced
- E-Mail Answers
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)
| Is This Answer Correct ? | 19 Yes | 1 No |
Post New Answer View All Answers
I was born on 4th may 1981 iam i eligible to apply for SBI clerical job vacancy
how to do finalisation account ,pls tell me step by step ?
Queries for Big4 Articleship : Whether son of CA in practice effects chances.
Expand SCERT
EXPAND_________TOEFEL
why are you selecting for the controlling area same company code?
Dear Sir/Madam, Executive Trainee...Finance I had been called for NTPC Group discussion and GD please guide me for getting success in GD and interview...
distinguish between Bill of Exchange and Promissory Note
Expand-------ATBN
Can anybody send me Interview questions & Answers to me IN Accounts & finance my Mail ID - virupaksha_krt@rediffmail.com
what is difference between venture capital financing and equity financing?
What do you mean by Revenue? does it include the Service Tax,VAT etc., by any chance ?
What is the value of inventory as per Financial Accounts (AS2) and as per Cost accounts? Someone told me that as per cost accounts only works costs is considered in CARR while for FA, AS2 is followed with cost or NRV whichever is lowewr? Please explain the difference.
Expand ----------GIDB
Prepare a trial balance from the following :- Particulars Amount Particulars Amount Rs. Rs. Purchases 8225 Premium on lease 1200 Wages 1025 Loan on mortgage 2500 Sales 12450 Plant & machinery 2000 Arun's capital 13500 Provisn for doubtful debts 300 Stock on 1/1/98 1500 Sundry debtors 16550 Salary 410 Trade charges 200 Rent & taxes 162 Bad debts 200 Sundry creditors 2572
