what is the meaning of preliminary expenses and how you
shown in balance sheet
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Preliminary expeneses are the nature of fictitious assets.
These are the formation expenses of the company before any
operation of the busines held. These are transferred to
the profit and loss accounts and written off every year
from the profits of the business. These expenses are shown
on the assets of the balance sheet under the head
misceallenous.
| Is This Answer Correct ? | 686 Yes | 79 No |
Answer / jagannath c v
Expenses incurred before the commencement of the business
are prelimary expenses and same will be deferred over the
period will be shown under Assets side of balance sheet as
Miscellaneous Expenses (Asset).
| Is This Answer Correct ? | 269 Yes | 43 No |
Answer / 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
| Is This Answer Correct ? | 140 Yes | 31 No |
Answer / raj
All expenses incurred before incorporation of the business
is called preliminary expenses.It is show in the assets
side of the balance sheet under the miscellaneous expenses.
| Is This Answer Correct ? | 99 Yes | 30 No |
Answer / rajesh
Preliminary expenses which we paid incorporate the company.
that expenses shall be transfered to profit & loss a/c.for
some years.so it will be in current asset.
| Is This Answer Correct ? | 250 Yes | 183 No |
Answer / latha mani.b
Expenses incurred prior to the incorporation of a company
are called preliminary expenses. They are ficticious
assets appearing on the ASSETS side of the Balance Sheet.
Every year a protion of them are written off from the
profit and in the Balance Sheet the total amount of
preliminary expenses is reduced by the amount of expenses
written off.
| Is This Answer Correct ? | 38 Yes | 16 No |
preliminary expenses are the expenses which accure at the
time of starting of the business as registration fees.
basically it is amortize as per decided time by the company
and at the time when the expense accure it will treate as
current asset.and written off every year from the profits of
the business.
Ex:- 18000/- expenses for Incorporation Fee
Preliminary Expenses A/c (Under Group Misc Expenses (Asset)
Preliminary Expenses Written off A/c (Under Group Indirect
Expenses)
18000/5=3600
1)Payment Entry
Preliminary Expenses A/c Dr 18000
To Cash/Bank A/c 18000/-
2)Journal Entry
Preliminary Expenses Written off A/c Dr 3600/-
TO Preliminary Expenses A/c 3600/-
Preliminary Expenses Written Off A/c 3600/- will reflect on
Profit& Loss A/c (Indirect Expenses Side)
Preliminary Expenses a/c 14400 will reflect on Balance Sheet
(Asset Side)
| Is This Answer Correct ? | 19 Yes | 1 No |
Answer / rahul brahmankar
preliminary expenses is come under ficticious assets.Its
entry comes under assets side only & transfered to p&l a/c
which is writen off frm the profit of the
business.preliminary expenses are those expenses which
incuured before commencement of bussiness.
| Is This Answer Correct ? | 21 Yes | 8 No |
Answer / quamruzzaman
Preliminary expenses are the expenses incurred for the
formation of a company like registration, expenses related
to MA&AA. These expenditures are shown on balance and will
be reduced against profit of the company every year until it
diminished.
| Is This Answer Correct ? | 23 Yes | 11 No |
Answer / shankar sharma
expensed made before the comencement of business and non
recoverable expenses are called preliminary espenses.these
expenses are shown on asset side of balance every year
untill it is completely reduced.it can not be shown in p&l
because it is not a regular expense of corporate or any
company
| Is This Answer Correct ? | 22 Yes | 13 No |
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