About reversal entries

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pawan (Querist)

12 February 2015 Dear Experts,

I want to ask what are the reversal entries in indian accounting pleas clarify with suitable example.

Regards
Pawan Kumar

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 February 2015 Reversal entries are passed mostly in April/May of the current year for liability created at the year end(March).
If payments are made against liabilities created no such reversal entries are required, only for excess liability reversal is required.

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pawan

pawan (Querist)

12 February 2015 thanks Mr. Seetaraman could you please elaborate this with a suitable example

Regards
Pawan Kumar

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 February 2015 Liability created for Expenses relating to March like salary, rent, and other bills paid in April will be reversed if such expenses are booked under natural head while making payment.

pawan

pawan (Querist)

12 February 2015 Thank You so much Mr SEETHARAMAN for your kind information

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