21 July 2020
i have received a bill dt 20.04.20 & service period is 15/3/20 to 14/04/20, so please tell me how to book exp in books & in which year it would be book
26 July 2020
Dear Rishi There are two ways of recording the transaction.
1. You follow the cash basis of accounting: Under this, the expense will be booked on the date of payment made, meaning thereby if you have made the payment on or before 31st Mar 2020 it will be the expenditure of F.Y. 2019-20. On the other hand, if payment is made on are after 1st April 2020 then expenditure will be booked in F.Y. 2020-21.
2. You follow the accrual basis of accounting: In this case, irrespective of the date of payment, you will make provision for expense pertains to period 15/03/2020 to 31/03/2020 in F.Y. 2019-20.
CAclubindia
