Dear all,
Generaly at the time of finalisation of accounts we make some provisoning of expences related to current year.
In commen practice we pic-up that part of expences which is paid in april or may of following year.
I want to know that whether this is a provisoning or this is a liabilty,because there is no estimation of amout of that expences.
Like i received my telephone bill related to month of march in april for Rs 5000.
At the time of finalisation of accounts how i should record this amount ? and what it is ? , provison or liability
CAclubindia
