Preliminary expenses in revised schedule vi

Originally posted by : RAHUL JOSHI
	what is the treatment of preliminary expenses in revised schedule vi if there is no profit & loss a/c(Cr.). if there is no p & l a/c,do i need to show it in non current assets ?

under  non currenct assets

Dear Rahul

plzz do elaborate the question

what does "NO P&L" means ????

how could there be no p&l even if it is a non-operating entity u will have to put on certain expenditures lyk for printing&stationery and auditors remuneration

and even in the cases entity hasn't commenced its operation u will have to prepare "Statement of Pre-operative" expenses

so plzz elaborate what are u asking for....

Mr. Apoorva-yar u know that in books there are few questions where no p and l a/c is given.

this is not a real life situation.B.T.W thanx.

thanx Mr. Rajesh.

guys as per sch 6,when p & l debit bal is shown in reserves & surplus as a negative item,in the same preliminary exps would be shown as negative item in r & s head....since their is no profits to set off the expense the treatment would be same......correct me if iam wrong...but i think this would be way....regards

 Ya then ...In any case you will have to keep it under

Current Assets

      NOn Current assets     XXX

you can't change the classificantion on account of mere absence of something in question

Apoorva that is not "Non Current Assets" under CURRENT ASSET head. its "Other Current Assets" under the head CURRENT ASSET

It shud be classified as other non current assets,

It should be classified on 

Prelimenery Exp extent to the extent not W/o

NON CURRENT ASSETS

              Other Non Current Assets

and Preliminery exp w/o

Preliminery Exp W/o  A/c  Dr

       To Prelimenery Exp extent to the extent not W/o( ie . Profit and Loss )