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