PRELIMINARY EXPENSE NOT WRITTEN OFF

whether preliminary expense not written off is deducted from reserves and surplus or is it shown under asset side?
Replies (2)
Quick Summary
Preliminary expenses should be shown on the asset side of the balance sheet, not deducted from reserves and surplus. They must be written off within five years and are allowable expenditures under Section 35(d) of the Income Tax Act. The accounting entry involves debiting the preliminary expense write-off account and crediting the preliminary expense account, with the write-off being reflected in the profit and loss account.

You have to show under asset side , It is to be written off within 5 year , also allowable Expenditure as per section 35(d) of the Income tax act .

When you write off at the end of the year pass entry
preliminary expense write off A/c Dr
To preliminary expense A/c Cr
( preliminary expense write off )

write off from profit and Loss account.
Preliminary expenses should be reported under current assets

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details