Accounts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2010 Respected Sirs,

we have created a provision for teliphone exp of Rs 1000/- on dated 31 March 2010.
Now My two question is :-

What wil be journal entries in the month of 10th April 2010 .
1) If we received teliphone bill Of Rs 1500/-
2) If we received teliphone bill of Rs 800/-

Kindly explain in detail.

with regards,

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
Follow

01 July 2010 Case 1
Telephone exp. A/c Dr. 1500
____To cash A/c 1500

Provision for telephone exp. A/c Dr. 1000
Profit and loss a/c Dr. 500
____To telephone exp. A/c 1500
.
Case 2
Telephone exp. A/c Dr. 800
____To cash A/c 800

Provision for telephone exp. A/c Dr. 1000
____To Profit and loss appropriation a/c Dr. 200
____To telephone exp. A/c 800

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

01 July 2010 In case 1,
You can direct one entry
Telephone Exp Payable Dr.1000/-
Telephone Exp Dr.500/-
To Cash/Bank 1500/-

Telephone expe is under the group of indirect exp of profit & loss a/c. There is no need to make entry for t/f any expense to profit & loss a/c
IF any expenses is debited itself it means
Profit & loss a/c is debited by that expenses.

Case2.
Telephone Exp Payable Dr. 1000
To Cash 800/-
To Profit & loss appropriation a/c 200/-
(for reversal for excess provision made)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now