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What is the treatment of preliminary? is this current assets?
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Answer / h.r. sreepada bhagi
Full name is Preliminary Expenditure. It's neither a Current
Asset of Fixed Asset. It's shown separately on the Assets
Side (In vertical Balance Sheet below Application of Funds)
under the head 'Miscellaneous Expenditure not written of or
adjusted' The amount is written off every year as per the
provisions of applicable Law.
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