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Account knowledge

Asad Zia (Accountant) (87 Points)

14 March 2016

Sir kindly can anyone tell me about the classification of expense for the plants and flowers for office for the cost of rs 10000/-. Plants and flowers are brought for office at the whole cost of rs 10000/-.

And the finding of brs are to be posted at which date in the books of accounts

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Saliq Ansari (CA_Final Student) (885 Points)
Replied 14 March 2016

The Classification of any expenses is based on the nature of the transaction and the purpose served with incurring that particular transaction.

The expenses on Plant and Flowers usally are not capitalised but are charged off to the Statement of Profit And Loss (Indirect Expenses).

The Bank Reconcilation Statement is a seperate Statement prepared to reconcile the difference in the Balance in Bank & balance in Books, There should be no entry passed in the books of account on behalf of BRS.