I Have preliminary Expenses standing in my clients account from past 10 years can those be written off? If yes how
4 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14868 Points)
Replied 10 March 2018
Yes , You have writte of preliminery exp in the first 5 or 6 years after the incorporation of the company .
pass the J.E at the end of the year until all amount written of
Prelimininery writte of A/C Dr - ( Under Indriect Exp A/c)
Preliminery Exp A/c CR
( Being Exp written off )
satish
(teaching)
(2046 Points)
Replied 10 March 2018
as per provisions of companies act 2013, preliminary expenditure which is incurred by the companies to be treated as revenue expenditure. irrespective the amount.
so what ever the balance is existed in balance sheet it to be written off immediately.
preliminary exp should not be consider as deferred revenue exp.
prasad Nilugal
( GST Practitioner & Accounts )
(14868 Points)
Replied 10 March 2018
Sir Let me know the section of the companies act 2013 -preliminery exp .Please read section 35D of the income tax act 1962
satish
(teaching)
(2046 Points)
Replied 04 April 2018
As per AS-26 Para 55 and 56 lays down in that preliminary expenses should be recognized as an expense in the period in which it is incurred.
Recent Topics
- Loss adjust
- GST registration -rent Agreement
- Study partner for CA Final- Jan 26
- Sir, ITC is not showing in GSTR-3B, what to do
- Capital Gains on Industrial Property...
- While making correction in form-26QB getting - Maj
- Late interest penalty of missed invoice forgot to
- LONG TERM CAPITAL GAIN ON HOUSE
- WOS in Mauritius, LRS,Accounting
- AP of Business under gst
Related Threads
Trending Online Classes
-
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
Industry Expert17 May 2025
CAclubindia
