Preliminary expenses set off

Dear jacky

    prelimenary exp. is not set off againest current assets,it incured in the beginig of the business started.

preliminary exp only set off againest reserve & surplus over the life of the business.

accounting entries for written off prilimenary exp.

profit and loss a\c                    Dr

general resrve a/c                       Dr

   To preliminary exp (full/partily  Amount)