Where to show Miscellaneous Expenditure (e.g. preliminary Expenses) in Schedule VI.........
thank you
CA Tushar Singhania
(Asst. Manager Accts & Fin.)
(402 Points)
Replied 25 September 2012
The guidance note on revised schedule VI does not specifically demarcate a space for showing preliminary expenditure and other fictitous assets, basically because defferment of revenue expediture including preliminary expenses has been removed. All expenses have to be written off as and when incurred or in the 1st year of operation.
in my opinion if you have already got existing preliminary expenses in your books there are 2 ways of dealing with it
1) write off the entire expenses this year to P\L
2) show the next year's amortization value in current assets, & the balance amount in Non-current Assets, as there are only heads in which it can be shown
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