CA
910 Points
Joined January 2009
for for paying any expenses account is due first as in practice you pay to some person not expenses,if you are paying through cheque then u need to create that person accounts first then after making due then only payment is made.
expenses A/c Dr.
to party
at the time of payment
party A/c Dr
to bank
and for writing off expenses
P&L A/c Dr.
to preliminary exp
( as per AS 26 it has to be written off within a period of 1 year)
and before AS 26 provision it used to be shown under the head of misc expenses under schedule VI.not current assets
however if you make payment by cash then you directly debit the expenses which is very rare in practical due to disallowance under section 40A(3)