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what is the meaning of preliminary expenses and how you
shown in balance sheet
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Answer Posted / lavish joshi
Before incorporation and commencement of business, company and the promoters of the company may incurred so many types of expenses like statuary fees and company logo designing, in some cases rent for the office premises during the time of incorporation not after incorporation etc... These are all comes under preliminary expenses .in simple words preliminary expenses are the expenses that spent by the promoters before the incorporation of company.
Examples:
Expenses paid for CA for incorporation of company
Expenses paid for name approve of the company
Expenses for printing of statutory documents like MOA, AOA
Stamp duties paid
Any other expenses paid to take the company into existence
Expenses for raising initial share capital
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