Question consists of two statements, namely, Assertion (A) and Reason (R). Select the correct answer.
Assertion: Preliminary expenses are to be written-off completely in the year in which such expenses are incurred.
Reasoning: Preliminary expenses should be written-off first from statement of profit & loss   and the balance if any, from securities premium.

Assertion (A) is true but Reasoning (R) is not correct.

Preliminary expenses are to be written-off completely in the year in which such expenses are incurred. They should be written-off first from securities premium and the balance if any, from statement of profit & loss.