**1. Preliminary Expenses**

Preliminary expenses are the costs incurred before the commencement of a business or company. These expenses are considered as a part of the start-up costs and are necessary to establish the business. The following are the subheads of preliminary expenses:

- **Legal and Registration Expenses**: These expenses include fees paid for drafting the memorandum and articles of association, stamp duty, registration charges, and legal consultation fees.

- **Promotion and Advertising Expenses**: These expenses include the costs incurred for promoting and advertising the business before its launch. It may include advertising campaigns, market research, brochure designing, and other promotional activities.

- **Preparation of Project Reports**: This includes the costs incurred for conducting feasibility studies, market research, and preparing project reports to assess the viability and profitability of the business.

- **Cost of Incorporation**: This includes the fees paid for the incorporation of the company, including the cost of obtaining a certificate of incorporation, company seal, and other related expenses.

- **Travel and Conveyance**: These expenses include travel costs incurred for meetings, site visits, negotiations, and other related activities.

**2. Goodwill**

Goodwill represents the reputation, brand value, and customer loyalty that a business enjoys. It is an intangible asset that arises when one company acquires another at a price higher than its net assets. The following are the subheads of goodwill:

- **Purchased Goodwill**: This arises when a company acquires another company and pays a premium for its reputation and brand value.

- **Self-generated Goodwill**: This arises when a company establishes a strong reputation and brand value over time through its operations and customer satisfaction.

- **Valuation of Goodwill**: Goodwill is valued by assessing factors such as market reputation, customer base, brand value, intellectual property, and future earnings potential.

- **Amortization of Goodwill**: Goodwill is not amortized but is tested for impairment annually or whenever there are indications of potential impairment.

**3. Long Term Investment**

Long term investments are assets held by a company for an extended period, usually more than one year. These investments are not intended for immediate resale and are classified as non-current assets. The following are the subheads of long term investment:

- **Investment in Equity Shares**: These are long-term investments made by a company in the equity shares of other companies. The purpose is to earn dividends and capital appreciation.

- **Investment in Debt Securities**: These are investments made by a company in debt securities such as bonds, debentures, and government securities. The purpose is to earn interest income over a long period.

- **Investment in Subsidiary or Associate Companies**: Companies may invest in other companies in which they have significant influence or control. These investments are made for strategic reasons or to expand business operations.

- **Investment in Real Estate**: Companies may invest in land, buildings, or other real estate properties for long-term appreciation or for operational purposes.

- **Investment in Joint Ventures**: Companies may enter into joint ventures with other entities to pursue specific projects or business opportunities. The investment in such ventures is classified as a long-term investment.

**4. Securities Premium Reserve**

Securities premium reserve is a reserve account created when a company issues shares at a premium, i.e., at a price higher than the face value of the shares. The following are the subheads of securities premium reserve:

- **Issue of Shares at a Premium**:

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3(long term investment ) -non current assest -other non current assets
4(securities premium reserve )-notes to accounts - less from sum of fully subscribed and not fully subscribed