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When to book expenses

Accounting Entries 1868 views 18 replies

 

MY COMPANY EXPORTED GOODS IN MARCH 12. C&F AGENT SENT US HIS BILL IN APRIL 12 WHICH INCLUDES DETAILS OF ALL THE EXPENDITURE INCURRED BY THEM ON BEHALF OF US.
 
WHEN SUCH EXPENSES ARE TO BE BOOK ? IN MARCH 12 ITSELF BY FOLLOWING MATCHING PRINCIPLE AND AS 29 OR IN APRIL 12?
Replies (18)

As I THINKS, 

Since goods has been exported in march and also possession has been transferred in march, It will be considered as sale and should be booked in march, 2012.

 

 

Agree With Sunny

same agree with sunny

 

agreed with sunny...

FYI....

For these kind of expenses you have to BOOK  provisions in march.

After receiving bill from agent you just account the bill and reverse the provsions created for that.

This is how we are doing in our company.

Regards

Mani

Agree with Manikandan

 

Yep... Agree with Manikandan

Always Matching Concept holds Good.

Account in March, by passing a provision entry.

if your books of accounts not closed, you may book these expenditure in march only, otherwise you may book these expenditure in april and at the time closing of books ot that year you may show these as prior period expenditure.

Yes agree with all

The important is that goods should be received in march itself.

The goods has been exported in March 2012 through your C & F Agent

Your C & F agent would have given you a quotation without that you would not have proceded to send the cargo through him.

So you can provide for a provision based on the quote and if you receive the bill in April , then you can rectify the entry if there is any +/- difference between the provision amount and the bill amount.

If the bill is received beyond your finalisation date for any reasons  and if the differnce is very nominal , you can adjust the same in the current year , otherwise you have to account through Prior Period Expenses.

to be booked in march only ( matching concept )

Hi,

should be booked in march through Provision Entry.

Originally posted by : work is worship

The goods has been exported in March 2012 through your C & F Agent

Your C & F agent would have given you a quotation without that you would not have proceded to send the cargo through him.

So you can provide for a provision based on the quote and if you receive the bill in April , then you can rectify the entry if there is any +/- difference between the provision amount and the bill amount.

If the bill is received beyond your finalisation date for any reasons  and if the differnce is very nominal , you can adjust the same in the current year , otherwise you have to account through Prior Period Expenses.

completely agree

 


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