Question

Preliminary expenses written off is debited in which account

Answer 1

Answer:

the preminary expenses is written off against securities premium.

Answer 2

Preliminary expenses are written off in profit and loss account.

Explanation:

Preliminary expenses are those expenses which promoter or proprietor incurs before the incorporation of company but these preliminary expenses doesn't shows up in the final accounts of the company .

but these expenses need to be charged against the profit of the company as these expenses belongs to the incorporation of the company.

so these expenses will be amortize in 5 years . the whole amount will be debited to profit and loss account in each year with equal amount.