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what is the meaning of preliminary expenses and how you
shown in balance sheet
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Answer Posted / .vaishnavi
A prelimnary expenses is a expense which are shown on the asst side of the balancesheet . it is a expense which are called fictious asset it means imaginery notn real.for eg.advertisement of the new product,a company invest a some of amt for the add purposes and its shown on the asset side of the balacesheet . prelimnary expenses are maid only in incorporation of the business.the prelimnary expensess r shown in profit&loss account every year and balancesheet every year the value of the fictious asset will be decrese
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