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Preliminary Expenses as Promoter's Contribution

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17 September 2010 Dear Experts,

One of the promoter has incurred preliminary expenses for the company. Can the same be adjusted against his share of capital?

18 September 2010 Preliminary exp. to be woff

18 September 2010 Adjustment would not be the right method. There has to be physical movement of funds. Eventually, the money would come back to the promoter.




19 September 2010 Hi Ashish,

Genarally promoters incure expenses on behalf of the Company. So it should be shown as payable to promoters. It can not be adjusted against Share Capital.



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