Directors/promoters have incurred preliminary expense from their own bank account.(since company is not in exist)
my doubt is wat is the jounal entry the company will pass to ratify the preliminary expense in companies books.
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Ractification of preliminary expense
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you can adjust the money from the amount payable by the sigantories of the memorandum towards the capital they need to contibute.
Preliminary expenses A/c-- Dr
to Share Capital A/c
Thanks Sir
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