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Preliminary expense..

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21 July 2014 Hi expert..

I have formed one company and its formation expense was 89,000 aprox.. the same amount is spent trough promotors bank account.

Now my question is how this preliminary expense should be shown in balance sheet?

want to ask journal entry so that i can correctly post the amount at correct ledger

Thax

21 July 2014 Preliminary Expenses A/c Dr
To Bank / Creditor A/c
[Being Preliminary Expenses of the company accounted for]

Profit and Loss A/c Dr
To Preliminary Expenses A/c
[Being full amount of expenses transferred to profit and loss account]

In terms of AS 26 "Intangible Assets" No Preliminary Expenses to be deferred but recognized in the year in which they were incurred.

21 July 2014 hi... but at the time of making company formation expense bank account was not exist.. it was used from promoter bank account... so whether i should credit promoters account against preliminary expense ?


21 July 2014 hi... but at the time of making company formation expense bank account was not exist.. it was used from promoter bank account... so whether i should credit promoters account against preliminary expense ?

21 July 2014 hi... but at the time of making company formation expense bank account was not exist.. it was used from promoter bank account... so whether i should credit promoters account against preliminary expense ?

21 July 2014 hi... but at the time of making company formation expense bank account was not exist.. it was used from promoter bank account... so whether i should credit promoters account against preliminary expense ?

21 July 2014 hi... but at the time of making company formation expense bank account was not exist.. it was used from promoter bank account... so whether i should credit promoters account against preliminary expense ?



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