24 July 2011
I AM IN THE PREPERATION OF BALANCE SHEET FOR A SMALL NEW PVT LTD COMPANY WHERE SHOULD I SHOW THE PRELIMINARY EXPENSES AND PRE-INCORPORATION EXPENSES IN THE ASSET SIDE?
Under which head of ASSET side I should show in New Schedule VI?
24 July 2011
Intangible Assets Preliminary & Preoperative expenses Deferred Revenue Expenditure Goodwill Trade mark Patents Rem : The o/s balance to be written off every year by charging P&L account
24 July 2011
Preliminary Expenses are the expenses incurred during the establishment of a firm/Company. These expenses have to be written off during a defined period of time proportationately- say 5 years or so. This goes to the asset side of balance sheet.
Non-current assets (a) Fixed assets (i) Tangible assets (ii) Intangible assets (iii) Capital work-in-progress (iv) Intangible assets under development (b) Non-current investments (c) Deferred tax assets (net) (d) Long-term loans and advances (e) Other non-current assets
Current assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets
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