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Forget to pass commission receivable entry what next???

Bibhuti ranjan (student) (36 Points)

27 August 2016

forgotten to pass commission receiveable entry in books of account during closing of FY 2014-15 , commisson received in bank account too in the month of april 2015 and it return has also filed. Now while prepareing for IT return for FY 2015-16 it came to notice

how to deal with it in books of account??

pls reply it's urgent

Thanks in advance

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 27 August 2016

Which accounting system you follow: Cash or Mercantile?

Bibhuti ranjan (student) (36 Points)
Replied 27 August 2016

mercantile

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 27 August 2016

As per law you have to revise return of ass. year 2015-16.

If amount is small and tax liability do not differ much, can credit it (as mistake) in FY 2015-16

Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 27 August 2016

DEAR SIR

YOU CAN DO ENTRY AS UDNER

DR -BANK (BANK)

CR- COMMISSION RECIEVED (DIRECT INCOME)

NOTE: KINDLY CHECK YOUR 26 AS FORM AND YOUR CLIENT STATEMENT BEFORE THIS ENTRY.

GOOD LUCK

Niraj Bista (A/C) (70 Points)
Replied 27 August 2016

Do not require to revise., as per AS 5, prior period items can be adjusted and accounted and disclosed properly in current year. so pass the entry in current year. off course check the 26 as too

ashim (partner) (30 Points)
Replied 01 September 2016

You have to show that commission income as Prior Period Income in P/L and offer for tax in the current year. In practice PP Expenses are disallowed but PP Incomes are considered.