what is the meaning of preliminary expenses and how you
shown in balance sheet
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Answer Posted / sudhi sharma
Preliminary Expenses is the expenses incurred before the
commencement of the company that beared by the promoters of
the company for its incorporation. As it is considered as
one of the fictitious asset of the company and is treated
as deffered revenue expenditure because it derives benefits
in the long run and thus written off every year on the
asset side of the balance sheet
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