Bonus

This query is : Open

Purushottam Joglekar (Querist)
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12 December 2012 Private Limited Co.

What is accounting treatement for bonus paid in current financial year (12-13), which is wrongly not provided in the books of earlier year (11-12) ?

Note - Written application received from employee in this matter.

V K Bajaj

V K Bajaj (Expert)
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13 December 2012 Mr Joglekar!

If not provided in 2011-12 but paid in 2012-13 does not constitute a wrong. You can account for Bonus expenses on payment basis.

However, if you have provided in 2011-12 but not paid within six month then there would have been a WRONG.