saikat banerjee (executive accounts) (44 Points)
07 April 2017
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 07 April 2017
Kindly note that a few regular payments will be made only after completion of the month viz., 1st week or 2nd week. Ex: Rent, Telephone Bill, MES charges, Insurance charges, Salary & so on. Whereas you may not know the exact amount of Phone bill, etc., In these cases you can make provisional amount based on the previous month's payment. Of course Insurance premium, Salary are known figures actual amount mentioned and leave it as outstanding.
JV entries are:
Telephone exp a/c Dr xxxx
Rent a/c Dr yyyy
MES charges a/c Dr zzzz
To Provisional for Expenses Cr AAAAA
Note: When you make payment & accounted the amount not in expenses a/c in the subsquent month since provisions already
made.It has to go there only to wipe out
Dixit
(CA Final)
(2405 Points)
Replied 07 April 2017
| Originally posted by : V P Narasimhan | ||
 |
Kindly note that a few regular payments will be made only after completion of the month viz., 1st week or 2nd week. Ex: Rent, Telephone Bill, MES charges, Insurance charges, Salary & so on. Whereas you may not know the exact amount of Phone bill, etc., In these cases you can make provisional amount based on the previous month's payment. Of course Insurance premium, Salary are known figures actual amount mentioned and leave it as outstanding. JV entries are: Telephone exp a/c Dr xxxx Rent a/c Dr yyyy MES charges a/c Dr zzzz To Provisional for Expenses Cr AAAAA Note: When you make payment & accounted the amount not in expenses a/c in the subsquent month since provisions already made.It has to go there only to wipe out |
 |
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