can i entered last year missing entry of int on car loan in current finalcial year? if yes how?
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 01 April 2016
Do you mean entry is missing in the books of company for interest expense on car loan? If yes, even if you make entry this year, the same will not be allowed as expense for the year (for the purpose of IT) and will be treated as prior period expense. If the amount is not significant, then you can make the entry this year and let it to be treated as prior period expense. But if the amount is significant, then you need to revise financials as well as ITR of last year. This will be a cumbersome process.
priti
(accountant)
(39 Points)
Replied 01 April 2016
if i treated as prior period exp what is the entry ?
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 01 April 2016
Entry is same as usual.
Interest on Car loan Dr
To Creditor/Loan/Bank account (as applicable)
But in the notes to account, this has to be disclosed as prior period expense.
lokeshkumaar
(student)
(77 Points)
Replied 01 April 2016
Komal patil
(student)
(28 Points)
Replied 02 April 2016
Komal patil
(student)
(28 Points)
Replied 02 April 2016
Komal patil
(student)
(28 Points)
Replied 02 April 2016
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 02 April 2016