06 December 2013
Preliminary expenses are expenses incurred for incorporation of company/business. These expenses will be written off over a period after incorporating the business.These expenses will be shown in Balance sheet asset side till write off.
Miscellaneous expenses are revenue in nature. Where expenditure not related to particular head of account or not able to classify, will accounted to Miscellaneous expenses. These expenses will be transferred to P & L account in the year end. Any miscellaneous expenses debited to P & L a/c in excess of prescribed limit by Income Tax Act, 1961 will be added back to income by authorities and will be taxed accordingly.
CAclubindia
