Schedule vi

Originally posted by : Gunjan Tulsyan
	IT Wud be shown as Rs. 20000 in Other Current Liabities and Rs. 40000 as Other Non current Liabilities..!!!!

What would be charged in P & L ?

See for Second year u have 80000 for writing off...so U will write off Rs.20000 to P&L A/c

Preliminiary Exp A/c                   Dr.              20000

             To Profit & Loss A/c                                   20000

then ur Prelim Exp wud be only Rs.60000 so this should be bifurcated as Rs.20000 in Other Current Assets (Since this will get written off next year) and Rs.40000 as other non current assets (since this will get written off in the subsequent years...Hope u got it and actually u can write off the entire expenditure in the first year itself the rule u r are referring has got changed way back this was followed before that notification and now u can write off that entire thing in the first year itself only for tax purpose it is claimed 1/5 th for five years...!!! Hope u got it...I will try to post that notification regarding writting off the entire preliminary exp in the first year itself...!!!

Dear Gunjan,

Thanks for your reply.

Agree that with revised sch VI from year 2011-2012, entire prel exp will be W/off in the first year itself for new companies having 2011-2012 as the first financial year. 

But I doubt regarding the treatment given to preliminary exp for existing cos having 2011-2012 as the second or third financial year. 

Trust and Hope I am able to post my query in legible manner.

Regards

Originally posted by : Gunjan Tulsyan
	IT Wud be shown as Rs. 20000 in Other Current Liabities and Rs. 40000 as Other Non current Liabilities..!!!!

Here liabilities should be substituted with assets. 

Yaa sorry for the mistake...but then i have stated the treatment in my second post after it correctly..according to me..hope u r doubt is finally resolved i have answered as per the Example u had mentioned..!!!