Doubt
This query is : Resolved
26 July 2016
When should we make liability entries in case of expenses. Is it necessary for cash payments
26 July 2016
When the liability has ARISEN, we should make the entry for the same....
What is your query about cash payment, I am getting it...can you please elaborate with some numerical example?
What is your query about cash payment, I am getting it...can you please elaborate with some numerical example?
27 July 2016
In my table i got a invoice of carriage inward which is already paid in cash
27 July 2016
this you can pass through PAYMENT voucher.
Debit Carriage Inward
Credit Cash
Debit Carriage Inward
Credit Cash
27 July 2016
Can you pls explain me in which scenario liability entry is required
27 July 2016
simple.....when liability is created, then the entry is passed.
Say goods purchased on CREDIT from say TDH
Debit Goods
Credit TDH.
Say goods purchased on CREDIT from say TDH
Debit Goods
Credit TDH.
27 July 2016
if it is purchased on credit.....then
debit...stationery
credit... supplier (Creditor for stationery)
debit...stationery
credit... supplier (Creditor for stationery)
27 July 2016
if it is paid in cash/ through cheque, then
debit concerned expenses....gift or stationery or festival bonus...as the case may be
credit cash/ bank.... as the case may be
debit concerned expenses....gift or stationery or festival bonus...as the case may be
credit cash/ bank.... as the case may be
27 July 2016
Thank you, now i can go ahead
I was using sap up to now. Now it is a customized software thats why just confirming.thanks a lot
27 July 2016
just to stretch the concept to far end......
think of a situation where in the joint meeting of management and workers, it is resolved and agreed to pay festival bonus.... then on the same day, one may pass the entry
debit festival bonus
credit festival bonus payable.... ....(Liability is thus created)
And when in due course, the actual payment is made
debit Festival bonus payable
credit Cash/Bank...as the case may be
think of a situation where in the joint meeting of management and workers, it is resolved and agreed to pay festival bonus.... then on the same day, one may pass the entry
debit festival bonus
credit festival bonus payable.... ....(Liability is thus created)
And when in due course, the actual payment is made
debit Festival bonus payable
credit Cash/Bank...as the case may be
27 July 2016
you are most welcome.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Non filing of I T Returns
- UDIN ISSUE
- SALARY CAN BE CAPITALIZE
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on Fixed Assets purchased
- TDS on purchase of under construction property from a reseller
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
