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Journal entry for Preliminary Expenses ??

Page no : 2

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

C.A. LINESH PATIL (CA) (910 Points)
Replied 28 October 2010

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.


ajay prasad (accountant) (23 Points)
Replied 09 September 2016

I agree with



Pranshu answer


ajay prasad (accountant) (23 Points)
Replied 09 September 2016

I agree with Pranshu answer

venakta raju 



Rahul (Student) (22 Points)
Replied 28 June 2019

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

Prachi Bansal (3089 Points)
Replied 17 March 2021

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

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