What is the treatment for PRELIMINARY EXPENSES?
- 27 Answers
- 76513 Views
- Capital IQ, Franklin Templeton, I also Faced
- E-Mail Answers
Answer Posted / ramesh rajani
Preliminary expenses are the expense mhich are paid in the
processing of company formulation. in other world they are
paid for bringing the company into existance.
As these expenses
1)are huge in amount,
2)are nonrecurring and
3)are not related with the day-today opretions
therefore it is not fair to treat it as revenue
expenditure.The total amount paid for such expenses are
first capitalised and shown in the balance sheet.thereafter
from this some portion is written off each year.
| Is This Answer Correct ? | 16 Yes | 4 No |
Post New Answer View All Answers
What is the meaning of Receipt & Payment, Income & Expenditure, Profit & Loss A/c? Under What cercumstances these are prepared?
Short Answer on ______________Import Trade
When is a dedit note raised When is an expense booked
Took goods from the shop for use at home. state whether the the following transcation is business transcation or non business transcation? with reson or explaination?
Aravinda Financiers sanctioned a loan of Rs 250000. A cheque was sent after adjusting processing charges Rs 247250 Pass necessary entry
whts is the meaning of over cost and under cost, what is difference ?
EXPAND___________NAC
What type of questions in accouting point of respect they ask genrally plz help me find out this.
What was key roles of Cashflow statement and Fund flow statement and Balnsheet..?
You configured new assets accounting for your company code with three depreciation areas that post in real time. When posting an external acquisition. How many documents are created?( any 1 answer) 2 3 4 6
What is the important of cash in a business unit
Classify bank account, stock of stationary account, returns inward account ou$tstanding rent account and capital account into real, personal and nominal account.
What is Accounting on Computers
what is ment by master in tally?
Why you want to leave your present job while they offer you with good offer?
