Directors/promoters have incurred preliminary expense from their own bank account.(since company is not in exist)
my doubt is wat is the jounal entry the company will pass to ratify the preliminary expense in companies books.
Sai Prasadh (Investment advisor) (139 Points)
21 January 2015Directors/promoters have incurred preliminary expense from their own bank account.(since company is not in exist)
my doubt is wat is the jounal entry the company will pass to ratify the preliminary expense in companies books.
CA Ganesh Agarwala
(Audit Senior Manager)
(239 Points)
Replied 21 January 2015
you can adjust the money from the amount payable by the sigantories of the memorandum towards the capital they need to contibute.
Preliminary expenses A/c-- Dr
to Share Capital A/c
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