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Preliminery expenses

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Querist : Anonymous

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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
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CA CMA CS Ram Pavan Kumar Melam

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CA CMA CS Ram Pavan Kumar Melam (Expert)
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.
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Querist : Anonymous

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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.
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