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Financial Statement

Preliminary expenses if given in adjustment , what will be the impact in the financial statement ?


Srini Sriram

Srini Sriram

CA Inter

3K+

17-Aug-20 14:44

20

Answers (4)

They are expenses incurred prior to incorporation hence treated as intangible asset. Debit the preliminary expenses A/c and Credit the Profit & Loss A/c for the amount determined as preliminary expenses. The preliminary expenses will be written off in five years.


Lavanya Chitturi

Lavanya Chitturi

Moderator

18-Aug-20 12:56

Did we credit it to the statement of p&l account or in liabilities side ?


Srini Sriram

Srini Sriram

CA Inter

3K+

18-Aug-20 17:53

P&L acc and it reflects in asset side


Lavanya Chitturi

Lavanya Chitturi

Moderator

18-Aug-20 22:53

Thank you ma'am


Srini Sriram

Srini Sriram

CA Inter

3K+

18-Aug-20 22:57

Happy Mother's Day
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