Preliminary expense

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2013 how shall i write off preliminary expense amount in new Profit & loss A/c? I mean can i write off it or should i deduct it from reserve in balance sheet?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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13 August 2013 u need to adjust them in Reserves in current year profit balance carried to bal sheet.

Ganeshbabu K

Ganeshbabu K (Expert)
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14 August 2013 Dr.Profit and loss A/c
Cr.Prelimenary expences A/c

Amortised amount Can be Shown in the face of Statement of profit and loss

And in balance sheet amount of expences to be amortised can be treated as "other current Assets" and rest if any can be treated as "other non-current assets"

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