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Financial Statements of Companies

where to disclose "Preliminary Expense" if given in 1) Trail balance 2) P&L account ?


Sai Krishna

Sai Krishna

CA Inter

4K+

20-Jan-21 21:45

19

Answers (2)

In Profit and Loss Account :-  Preliminary Expenditure written off during the year should be shown in notes  Under  â??Other Expensesâ??. In Revised Balance Sheet :-  In Revised Balance Sheet it should be shown as â??Other Assetsâ?? and its amount should be shown in non current Assets column.


evolvo o

evolvo o

CA Inter

3K+

21-Jan-21 09:30

Preliminary expenses are not shown in balance sheet. They are written off.


Suraj Lakhotia

Suraj Lakhotia

Admin

21-Jan-21 09:32