Interested to Buy Any Domain ? << Click Here >> for more details...
why preliminary expenses are written off every year from
profit and loss a/c.??
- 2 Answers
- 10580 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / h.r. sreepada bhagi
Preliminary Expenditure is the expenditure incurred on
formation of a company. Since the benefit of this
expenditure is spread over the life of the company, it would
not be prudent to charge of the whole amount to the Profit &
Loss A/c of the year when it is incurred. Again it is not a
real asset & treated like Deferred Revenue Expenditure &
carried forward in the Balance Sheet to the extent not
written off/charged off.
Since the same can not be carried forward for an unknown
future, laws provide for writing it off over a certain
period of years (i.e. 5 yrs,10 yrs, etc). Hence it is
written off every year till it becomes zero.
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / ranjeet jha
Preliminary expenses is also expences of
company/firm/individual/local authority. as per rule only
10% has been written off in preliminary expenses.
| Is This Answer Correct ? | 2 Yes | 0 No |
what is mean by provision ? give me examples ..
what is purchase entry how to book the entry
What does stand for EPD,MIS? Can anyone tell me briefly n clearly about this?
what do you mean by Accounts payable
could you please suggest an institute for classes in accountancy near punjagutta?
please send Model question Paper accounting related question for entrance test
WHAT IS THE MEANING OF CREDIT WORTHINESS?
7 Answers Capital IQ, Finance,
What is ISIN?
tell me something about urself?
23 Answers Accenture, CMS, Cognizant, ICICI, Nipuna, TCS, Thomas Cook, Wipro,
closing stock at the end is comprised of %a purchase price of $60000,10% discount and 15% import duty.The stock can be sold for $70000 after incurring costs of $1950.Included in the purchase price is abnormal wastage of $2000.Transportation costs are $1000 and storage costs are $500,what is the value of the closing stock?
What is EBITDA
MMT and MID payment how post in tally
Audit 
