Practicing Success
If any balance is left after writing off preliminary expenses from securities premium, then from where the balance is to be written off? |
Debenture Redemption Reserve Revaluation Reserve Capital Redemption Reserve Statement of profit & loss |
Statement of profit & loss |
The correct answer is option 4- Statement of profit & loss. 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. |