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Preliminary expenses in revised schedule vi

RAHUL JOSHI (Doing articleship) (229 Points)

02 May 2013

what is the treatment of preliminary expenses in revised schedule vi if there is no profit & loss a/c(Cr.).

if there is no p & l a/c,do i need to show it in non current assets ?

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RAJESH PARAMU (FC) (24 Points)
Replied 02 May 2013

Originally posted by : RAHUL JOSHI
	what is the treatment of preliminary expenses in revised schedule vi if there is no profit & loss a/c(Cr.). if there is no p & l a/c,do i need to show it in non current assets ?

under non currenct assets

CA Apoorva Gaurav (CA) (368 Points)
Replied 02 May 2013

Dear Rahul

plzz do elaborate the question

what does "NO P&L" means ????

how could there be no p&l even if it is a non-operating entity u will have to put on certain expenditures lyk for printing&stationery and auditors remuneration

and even in the cases entity hasn't commenced its operation u will have to prepare "Statement of Pre-operative" expenses

so plzz elaborate what are u asking for....

RAHUL JOSHI (Doing articleship) (229 Points)
Replied 03 May 2013

Mr. Apoorva-yar u know that in books there are few questions where no p and l a/c is given.

this is not a real life situation.B.T.W thanx.

thanx Mr. Rajesh.

Jibin Thomas (CA Final,B COM(H)) (109 Points)
Replied 03 May 2013

guys as per sch 6,when p & l debit bal is shown in reserves & surplus as a negative item,in the same preliminary exps would be shown as negative item in r & s head....since their is no profits to set off the expense the treatment would be same......correct me if iam wrong...but i think this would be way....regards