Arrears paid in march

Save Share

This query is : Resolved

Srimannarayana (Querist)

30 March 2016 Sir If we paid arrears or Honorarium for the month of March 2016 which F.Y its belongs to?
1. If we paid them in March and they received in March?
2. If we paid them in March and they received in April?

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

30 March 2016 It will as per your accounting rules.
If you booked in March then It will come in F.Y. 2015-16 and if not then F.Y. 2016-17.
Its not depends on when they received its upon when you have booked.

PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)

30 March 2016 Dear

I am presuming company in your case and in second question I think your question should be Arrears for the month of march paid in april 2016.
a) If the Company is following Mercantile system of accounting then in both the cases it will pertain to FY 2015-16 i.e. March 2016.

b) If the Company is following cash system of accounting then
1. Pertain to March 2016.
2. Pertain to April 2016.

Regards
Pradeep

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