FBT

This query is : Open

CPA Parveen Sharma (Querist)
Follow

06 August 2009 Does it is necessary to provide FBT provision before ending of quarter..if yes what would be provision and payment entry.

FBT Provision should be provided on which date ?

Secondly if i deposited exact FBT after every quarter without making any provision..is that wrong ???

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
Follow

06 August 2009 Provision is expected liability to come in next Qtr so you decide wht you may have to pay for FBT.

Entry is

P&L A/c Dr
Prov for FBT Cr.

CPA Parveen Sharma

CPA Parveen Sharma (Querist)
Follow

06 August 2009 hi Prakash, you mean provision for FBT for July to September Qtr..should be done in July..correct ???

Please see the below entry..is that correct ?

1. FBT Dr (Under Expenses group)
To FBT provision Cr (under loan& advanc)
(Making provision for July to Sep)

2.FBT provision Dr
To Bank
(Depositing FBT)

3.Profit and Loss
To FBT
(Trfd closing balance to P&loss)

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
Follow

06 August 2009 Yes you are very right in passing above entries :)

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
Follow

06 August 2009 Its correct to make provision for FBT for July to September Qtr..in July..:) cheers the helping hand :)

CPA Parveen Sharma

CPA Parveen Sharma (Querist)
Follow

06 August 2009 Thanks prakash. one more question...i did not made any FBT provision in FY 2008-2009. during the audit objection was raised by the auditiors.

Would it make any difference if i put FBT provision entry now in previous date, as i am about to close my books for the FY 2008-2009

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now