Urgent: new balance sheet
CA Chandan Singh (Chartered Accountant) (49 Points)
12 April 2015
where to show Preliminary Expenditure in new Balance Sheet..
8 Replies
Nitish Agrawal
(CA)
(810 Points)
Replied 12 April 2015
It wil be shown in reserve and surplus as negative item....
Deepak Gupta
(CA Student)
(15922 Points)
Replied 12 April 2015
Preliminary expenses are not shown in the balance sheet.
.
Whole amount will be recognised as an expense when it is incurred, by way of a charge to the profit and loss account. [Refer to Para 56 of AS 26]
.
Further, if the same has been treated incorrectly by the company in the year of incurrence, it should be rectified in the current year and disclosed appropriately as a prior period item in accordance with AS 5.
Prabhat Modi
(Student)
(301 Points)
Replied 12 April 2015
Whole amount charged to p/l a/c. No need to disclose in b/s.
N.Rajeshwari
(taramani)
(23 Points)
Replied 13 April 2015
Preliminary expenditure show in balance sheet asset side
shameem khan
(article assistant)
(44 Points)
Replied 13 April 2015
show in reserve and surplus as negative item
Srividya Murali
(Article Assisstant)
(211 Points)
Replied 14 April 2015
you must write it off to p&l when it is incurred considering it as an expense. it should not be disclosed in b/s.
Sumit Tandon
(student)
(40 Points)
Replied 16 April 2015
preliminary exp are shown in b/s under current or non current asset depending on the period of amortisation
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