Preliminary expenses are expenses prior to start of operating activity and shown in assets side as an other assets.
preliminary expense is the expense for fitting the asset or similar works, so this expenses capitalized.... and is called fixed asset
Preliminary expenses are those expenses which incurred before start of actual operations so these are assets of business and shown in asset side of balance sheet as other assets and then amortized over period of time through income statement.
[Debit] Amortization of Preliminary expenses xxxx [Credit] Preliminary expenses xxxx
Preliminary expenses are any cost incurred when starting a company. The cost of the location, hiring employees, and fees for an attorney are considered preliminary expenses.
[Debit] Amortization of Prelimenary expenses xxxx [Credit] Preliminary expenses xxxx preliminary expenses are amortized in equal amount intil it is fully write off.
Share premium is a liability to the company. It is used to write off preliminary expenses and is used to issue bonus shares etc.
preliminary expenses account debit to cash account (if the amount has been paid in cash)
Preliminary expenses are neither administrative expenses nor selling expenses rather these are classified as other assets in balance sheet and amortized over period of life of business.
All the expenses which a business incurred from start of business to actual start of operations of revenue generating activity of business is called preliminary expenses.
Preliminary expense are those expense which incurred before start of operating activity so it is called other assets and shown in asset side of balance sheet.
[Debit] Preliminary expenses 20000 [Credit] Cash account 20000
because we get the benifit of such expenses in future