Preliminery expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2016 Dear all
can anyone explain me about preliminary exp. what kind of exp. it is...
please clarify...

Regard
Manoj Gautam

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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06 February 2016 During the incorporation or commencement of business of a company, the promoters may incur expenses such as registration fee etc., In simple terms, preliminary expenses are in nature of amount spent by the promoters before incorporation of a company.
The below are a few examples:
Expenses paid to an advocate / a CA for drafting MOA /AOA;
Expenses for printing of MOA/AOA;
Expenses paid for incorporation of a company including name approval;
Stamp duties on execution of MOA and AOA; etc.

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2016 thanx for your valuable reply plz let me know when do we Need to record the accounting entry of preliminary exp.