Journal entry for Preliminary Expenses ??

Page no : 2

(Guest)

Originally posted by : pranshu singhai
	1. Preliminay Exp. -----------Dr. (under current assets) To Cash/Bank 2. Profit/Loss a/c Dr. To Preliminary Exp. A/C (1/5 part of prelimnary exp. w/o for every year)

ya i agree with Pranshu

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C.A. LINESH PATIL (CA) (910 Points)
Replied 28 October 2010

I would suggest all who to just once have reading of AS 26 which require to write off in a one year that is the year of incurred.

Thanks

ajay prasad (accountant) (23 Points)
Replied 09 September 2016

I agree with

C.A. LINESH PATIL

and

Pranshu answer

ajay prasad (accountant) (23 Points)
Replied 09 September 2016

I agree with Pranshu answer
and

venakta raju

Rahul (Student) (22 Points)
Replied 28 June 2019

Since the 'to be director' bears the expenses on behalf of the company (which hasn't been incor yet and so doesn't have its own Cash A/c) , should it not be correct to credit the Director's or Promoter's A/c Instead of Cash A/c, as in - Prelim. Exp Dr. 3000 To Promoter's A/c 3000