Expenses entry

This query is : Resolved

Report Abuse Follow Query Ask a Query

Hari Gaud

Hari Gaud (Querist)
Follow

19 April 2014 If the bill date is after 31/03/2014 then what entry we have to pass in books of account i. e. in tally

Sandeep Dharar

Sandeep Dharar (Expert)
Follow

19 April 2014 Transactions does not effected by date. If it is last date then book it in the same date.

Hari Gaud

Hari Gaud (Querist)
Follow

19 April 2014 If the bill date after 1st April and the billing date from 1/3/14 to 31/3/14 of utility bills then what is the entry in books of account ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

19 April 2014 you can create a provision for the same as at 31 March.

Sandeep Dharar

Sandeep Dharar (Expert)
Follow

19 April 2014 U can show it in the financial year in which the expense originate as payable expense. In Current Liability.

Hari Gaud

Hari Gaud (Querist)
Follow

19 April 2014 How to do the entry in tally ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

19 April 2014 well given that bill is dated after 1 April, it is not payable as on 31 March, hence it cannot parked as a current liability.

However, since the expense relates to the current year, you need to create a provision.

The entry would be:

Electricity Exp A/c (P&L) Dr
To Provision for Electricity Exp A/c (Balancesheet)