Preliminary Expenses are the expenses incurred during the
establishment of a firm/Company. These expenses have to be
written off during a defined period of time
proportationately- say 5 years or so. This goes to the
asset side of balance sheet.
Preliminary expenses are the expenses which we paid in
advance but we does not take the benefits of these expenses
at the time of their payment so these expenses become our
assets.So preliminary expenses recorded at asset side in
the balance sheet.
In direct and indirect expenses we know direct means
expenses incured durning prodution process, indirect means
expenses incureed after prodution process, apart from
manufacturing concern , what do mean by direct & indirect