Pre incorporation Expenses Journal Entry

Above  mentioned  are preliminary expenses  of  New  company 

however New Company and Your Company are two different companies, and you paid Cash from your Company to New Company for preliminary expenses , is it Correct ?. please Clarify.

Yes Sir, that's correct. I paid Cash from my company to the new company yet to be fored.

Dear Sir, 

The new company is going to pay back the money. And I am aware of Section 43(A)(3) under Income tax act.

Sir.. I am not aware of such restrictions. Would you please let me know the provisions relating to it? But as far as I know, there are no any such restrictions.

Dear sangam pakuwat .

I am also not aware of perticular section, but you confirm with others, I will pass entry no problem.
in your books entry will be ( suppose your Company is A Ltd )

New Company A/c Dr
To Cash A/c Cr
( payment for preliminary expenses of new company)

New Company A/c will be under Loans and Advance ( Asset) , because  new company will  return  you back  in future . 

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In the books of New Company

Preliminary expenses A/c Dr
To Company A Ltd A/c Cr
( preliminary expenses paid by A Ltd )

Company A Ltd A/c will be under Trade Creditor, (Current Liability) .

preliminary expenses under current Asset side and are supposed to write off with in 5 year. please confirm.

Sir..

The question arises in my mind that how can I debit the new company if its not formed yet?

Then  to whom  you have  paid  ?  It is  preliminary  expenses  of new company so you can not  debit  to preliminary  expenses .  

Sir

Paid directly to the consultants .