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what is the meaning of preliminary expenses and how you
shown in balance sheet
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Answer Posted / jagadeesh.rt
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 |
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