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Excess booking of expense in previous year (including st)

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This query is : Resolved

Mahesh S. Pillai (Querist)

17 January 2012 Sir,
What's the appropriate way or rectification entry to be made for the error made in the previous year.
These are the original entries passed in the books of the company,

a)Expense booked in the previous year, [ie, on 31/03/11 (FY-2010-11)]
Expense A/c Dr 1104
To Party A/c 1104
[liability being booked in march(service tax wrongly included in expense)]

b)Payment made in April (FY-2011-12)
Party A/c Dr 1000
Service Tax A/c Dr 104
(paid on input services)
To Bank/Cash 1104
(payment made and service tax paid on input services booked)

is the following rectification entry apt?

Party A/c Dr 104
To Prior Period Expense 104
(rectification entry for the excess booking of expense and liability in the previous year)

Please do reply,,,

-Thanks & Regards

Mahesh S. Pillai

Mahesh S. Pillai (Querist)

03 February 2012 Thanks,,,,,,

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