Expenses in accounts finalisation
This query is : Resolved
CA. Jyoti Baid
(Querist)
01 April 2010
Respected All,
A company is finalising its accounts for the year ended 2009-2010.
It has not received the telephone and electricity bills for the months of February and march.
What should the company do while preparing the balance sheet.
Can it show the amount of these two bills in the next financial year 2010-2011 and will these be allowed in income tax assessments in that year?
Regards,
Jyoti
A company is finalising its accounts for the year ended 2009-2010.
It has not received the telephone and electricity bills for the months of February and march.
What should the company do while preparing the balance sheet.
Can it show the amount of these two bills in the next financial year 2010-2011 and will these be allowed in income tax assessments in that year?
Regards,
Jyoti
kartik_somu
(Expert)
01 April 2010
the company can make provision based on previous months bill and expected bill amount. in the next year it can reverse the provision and book the actual expense.
CA SANJAY MUKHERJEE
(Expert)
01 April 2010
Agree with expert.
01 April 2010
AGREE
CA. Jyoti Baid
(Querist)
03 April 2010
Thank you for the reply.
But in the next year on booking the actual expenses of feb and march, will these exps be allowed in the next year in the income tax assessments.
For eg: In F.Y. 2009-2010,follwing entry will be passed on estimated basis:
P/L Account Dr. 25000
To Prov for expenses 25000
Will Rs. 25000 be allowed on provisional basis in F.Y. 2009-2010.
Next year:2010-2011, actual expenses- Rs.30000
Prov for expenses 25000
To P/L Account 25000
P/L Account Dr. 30000
To Expenses 30000
oR, rS. 30000 of F.Y. 2009-10 be allowed in F.y. 2010-11 on actual booking.
Please clarify.
Regards
But in the next year on booking the actual expenses of feb and march, will these exps be allowed in the next year in the income tax assessments.
For eg: In F.Y. 2009-2010,follwing entry will be passed on estimated basis:
P/L Account Dr. 25000
To Prov for expenses 25000
Will Rs. 25000 be allowed on provisional basis in F.Y. 2009-2010.
Next year:2010-2011, actual expenses- Rs.30000
Prov for expenses 25000
To P/L Account 25000
P/L Account Dr. 30000
To Expenses 30000
oR, rS. 30000 of F.Y. 2009-10 be allowed in F.y. 2010-11 on actual booking.
Please clarify.
Regards
CA Ashok Kumar Sahu
(Expert)
03 April 2010
you can pass below entry:
In F.Y. 2009-2010,following entry will be passed on estimated basis:
Telephone & Electricity Account Dr. 25000
To Prov for expenses 25000
Rs. 25000 be allowed on provisional basis in F.Y. 2009-2010.
Next year:2010-2011, actual expenses- Rs.30000
Telephone & electricity 5000
Prov for expenses 25000
To Bank a/c 30000
Try to Make provisional entry excess of Actual amt. payable.
in F.y. 2010-11 Rs. 5000/- not allowed,
hence Try to Make provisional entry excess of Actual amt. payable i.e. 30000/-
In F.Y. 2009-2010,following entry will be passed on estimated basis:
Telephone & Electricity Account Dr. 25000
To Prov for expenses 25000
Rs. 25000 be allowed on provisional basis in F.Y. 2009-2010.
Next year:2010-2011, actual expenses- Rs.30000
Telephone & electricity 5000
Prov for expenses 25000
To Bank a/c 30000
Try to Make provisional entry excess of Actual amt. payable.
in F.y. 2010-11 Rs. 5000/- not allowed,
hence Try to Make provisional entry excess of Actual amt. payable i.e. 30000/-
Message likes :
1 times
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
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Nursery business
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- 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
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
