Interested to Buy Any Domain ? << Click Here >> for more details...
what is the meaning of preliminary expenses and how you
shown in balance sheet
- 50 Answers
- 242560 Views
- Banking, BPL, CA, Capital IQ, Chartered Accountant, First Midwest Bank, GE, Glass Wall Systems, Ocwen, Siemens, I also Faced
- E-Mail Answers
Answer Posted / jishnu surendran
Preliminary expenses are formation expenses of the company such as MOA and AOA filing fees, fee for registering authorized capital etc.
As per section 35D of the Income Tax Act, preliminary expenses should be written of in 5 equal installments in each year after the commencement of business.
As per the Companies Act and Accounting Standards of the ICAI which is in tune with the Companies Act, writing off of preliminary expenses is the discretion of the company.
The Revised Schedule VI ( format of Balance Sheet under the Companies Act ) does not recognize an item named Miscellaneous Expenditure, which was a head present in the former Schedule VI format.
| Is This Answer Correct ? | 2 Yes | 0 No |
Post New Answer View All Answers
Expand-------ANTS
what are Blue-Chip companies?
can anybody send me interview question&answer to me in accounts and finance and income tax....my mail.id...jagathis1986@gmail.com
outstanding expenses, prepaid or unexpired expenses
what is accounting in automobile
please answer this question.the following balances were extracted from the books of modern traders on 31st dec,2010.capital(85000)fixed assets(45000)stock1-1-2010(15000)sundry debtors(20600)productive exp(3300)reserves fund(6600)discount received(800)cash in hand(6200)drawing(5000)accomulated dep.(9000)purchases(82000)bad debts(400)unproductive exp.(27400)sundry creditors(9000)sales(120000)cash at bank(25500).adjustments.stock on 31-12-2010(15000).outstanding wages (5000) write-off (600)of further bad debts. create provision for bad & doubtful debts at {5%) on debtors.unproductive expenses includes anitem of prepaid insurance (100).provide depreciation on original cost of fixed assets @ (10%).
Hi, Please post in here the Aptitude Test Questions given in companies like Thomson, Reuters, GMS, JP Morgan, Northern Trust Bank etc.
In Oracle Applications will Translation will create any journal entry then what is the journal entry what are the accounts affected
what is mean by T and E cosept
Hi guys, If anyone have gone through the CAPITAL IQ-Junior Research Associate interview then plz let me know about its pattern..and if anyone hav its placement papers or any other information then plz post to me at arshadbasha_mba@rediffmail.com
why you want to join the banking and finance industry?
is advance against FD or RD is treated as NPA .if EMI is not in scheduled . or classification of npa as per day is is made from sanction date or last payment date of repayment . please suggest me
what are micro-cap, small-cap, mid-cap, large-cap companies?
what is Sums on Finalization of Accounts?
From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.
