Journal entry for Preliminary Expenses ??

Originally posted by : pranshu singhai
	1. Preliminay Exp. -----------Dr. (under current assets) To Cash/Bank 2. Profit/Loss a/c Dr. To Preliminary Exp. A/C (1/5 part of prelimnary exp. w/o for every year)

ya i agree with Pranshu

I would suggest all who  to just once have reading of AS 26 which require to write off in a one year that is the year of incurred.

Thanks

I agree with

C.A. LINESH PATIL 

       and

Pranshu answer

 

I agree with Pranshu answer
     and

venakta raju 

 

 

Since the 'to be director' bears the expenses on behalf of the company (which hasn't been incor yet and so doesn't have its own Cash A/c) , should it not be correct to credit the Director's or Promoter's A/c Instead of Cash A/c, as in - Prelim. Exp Dr. 3000 To Promoter's A/c 3000

Could you please let me know what all expenses comes under preliminary expenses because everywhere its showing something different only

compony is not formed yet how a compony can pay in cash or bank , preliminary expenses incurred before incorporation of a companay , it has no bank account , how expesnes is paid