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What is the treatment for PRELIMINARY EXPENSES?
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Answer Posted / inayat khan tareen
preliminary expenses are those expenses which incurred
before starting or managing a new business such as
registration fee, preparation of article and memorandum of
association, prospectus fee, legal charges etc.
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Prepare a trial balance from the following :- Particulars Amount Particulars Amount Rs. Rs. Purchases 8225 Premium on lease 1200 Wages 1025 Loan on mortgage 2500 Sales 12450 Plant & machinery 2000 Arun's capital 13500 Provisn for doubtful debts 300 Stock on 1/1/98 1500 Sundry debtors 16550 Salary 410 Trade charges 200 Rent & taxes 162 Bad debts 200 Sundry creditors 2572
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