what is the meaning of preliminary expenses and how you
shown in balance sheet
- 50 Answers
- 229986 Views
- Banking, BPL, CA, Capital IQ, Chartered Accountant, First Midwest Bank, GE, Glass Wall Systems, Ocwen, Siemens, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / geet
Preliminary expenses are those which are incurred in connection with the formation of the company.....
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / muzamil ahmed
preliminary expenses are thoes expenses which is accured b4 estabilshment of bussiness
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / karthik
Expense which are incured in before commencement of bussiness like registarion fees. way expense on registion time.. this expense is show in under Asset side of balance sheet as misleance Expense .. it will be written off by 5 year .. nt on one year
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / v.balaji
peliminary expenses is paid to incorporate of the company ,expenses shall transfered to profit and loss account,it wil be written of every year ,its nature of fictious assets ,it wil treat as current assets
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / suraj
Preliminary expenses are the expenses which
are incurred before the formation of a
company. And these type of expenses are
borne by the promoters for setting up
company.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / balaji ganesh
priliminary expenses are those expenses which are inncured for the development of business before its incorporation.
Its debited on profit and loss ac,and its shown on asset side of the balance sheet,where the value of the expenses is subracted(i.e credit aspect) from the profi of the businees,for the period of five year
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / noufal muhammed
Preliminary expenses is the expenses which are incurred prior to the incorporation of a company, such as legal expenses,registration fees and other promotional expenses.It will shown on the debit side of Profit & Loss Account and will be written off each year from the profit of the company.It's a current asset in nature and shown in the asset side of balance sheet under miscellaneous expenditure (fictitious asset).
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / lavish joshi
Before incorporation and commencement of business, company and the promoters of the company may incurred so many types of expenses like statuary fees and company logo designing, in some cases rent for the office premises during the time of incorporation not after incorporation etc... These are all comes under preliminary expenses .in simple words preliminary expenses are the expenses that spent by the promoters before the incorporation of company.
Examples:
Expenses paid for CA for incorporation of company
Expenses paid for name approve of the company
Expenses for printing of statutory documents like MOA, AOA
Stamp duties paid
Any other expenses paid to take the company into existence
Expenses for raising initial share capital
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / ramesh
(i) Preliminary expenses are the expenses incurred for the
formation of an entity like registration, expenses related
to MA&AA and etc.
(ii) As per Accounting Standard 26 "Intangible Assets", Amounts incurred towards Incorporate an entity (i.e. Start-up costs) will not meet the asset recognition criteria and should be transferred to the P&L A/c in the year in which it is incurred. But for the purpose of calculating Income tax payable, we should add back the entire amount debited to P&L a/c and should deduct 1/5th of the amount allowable U/s 35D of Income tax Act, 1961 and should calculate the deferred tax.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / mahesh honamane
these are the expenses made before the commencement of business and these are transferred to p&l account every and recorded on asset side of balance sheet under the head miscellaneous
| Is This Answer Correct ? | 0 Yes | 0 No |
Who is Finance minister of India?
Short Answer on_____________Current Liabilities
journal entry for drawings?
what is meant by Tangible assets intangible assets
Expand --------CAIR
genpact uk based shift timings? and R2R job profile?
What is vlookup?How it is prepared?
what is securites
EXPAND___________LNG
what is open item managed account?
What is management? what is finncial management? difference b/w accounts& finance?
Salry pai dto Sharma debited to Sharma account is it correct.If not correct rectify it
Audit 
