Revised schedule vi

Miscellaneous expenditure can no longer be shown as a separate broad heading under „Assets‟.

It would be required to be reclassified depending on the nature of each such item.

in revised schedule VI no specific treatment for miscellaneous expenditue is given. As per revised sch assets are classified in two broad categories current and non current. in genereal notes to revised sch VI it is given that Accounting Standards will be given preference over the provisions of revised sch. VI. 

According to AS 26 asset is defined as resources which have future economic benefits and can be controlled by entity (i.e. can be sold by entity), so miscellneous expenditure does not qualify the definition of assets, hence can not be classified in current and non current asset. 

As per rev sch debit balance of P& L has to be deducted from reserves, accordingly miscellaneous expenditure which are not w/off fully in first year (not in accordance with AS-26) are in nature of debi balance of p&l, hence it should be adjusted against reserves

Agreed 

Thank u all for the discripttion....

Can u tell me that what should be done with the amount of priliminary expenses which has not been written off yet????

it should be set of against Reserves...

5% of Capital - Say 3500000*5%=175000

OR

Actual Preliminery expenses Say 60000

OR

1/5 of Preliminery expenses 60000/5 = 12000

Maximum of all above (Subject to Preliminery expenses)  = 60000 /- expenes out in books.