can you kindly explain the entry,,,
on 31 mar 2011 i made entry
telephone expenses ac dr --- 1500rs
provision for telephone expenses ac cr --- 1500 rs
and on 10 april i recd the telephone bills worth 1200/- kindly explain what the entry should be?
should i modify the journal entry made on 31-3-11 to Rs.1200 Rs. or shall i create a provision only after i receive the actual expenses, because i dont think so there will be any company who closes accounts on exact 31 mar, guess many companies make backdated entries, and is it good to make backdated entries, many times i make lot of backdated entries, so only after receiving tel bill can i make the amount of rs.1200 as provision?