Narration of provision

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bishal (Querist)
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10 April 2014 what is narration in voucher for the electricity payment for the month of march'13 which has been paid in april'14 and also for the salary expenses?

i need to know what is narration in old account at time of provision made and what is narration at time of payment in new books of accounts ? plz advice

Sandeep Dharar

Sandeep Dharar (Expert)
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10 April 2014 For the month of March:-

Being Provision made for electricity for the month of April

For Payment made:-

Being Salary paid for the Month of March..

bishal

bishal (Querist)
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10 April 2014 can u plz clear this . not able to understand

Sandeep Dharar

Sandeep Dharar (Expert)
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10 April 2014 In which part there is query?

bishal

bishal (Querist)
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10 April 2014 for the provision of expenses (electricity).
it has two entry:

on at time of booking provision in 2013-14 A/c ( then what is narration)

and at time of payment which is made on april'14 (in 2014-15 A/c)

(then what is narration )

Sandeep Dharar

Sandeep Dharar (Expert)
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10 April 2014 tHATS WHAT I HAVE EXPLAINED ABOVE..

At the time of booking it is actually u r creating provision for that expense. So the narration will be:-

Being provision for the Electricity expenses made for the month of Mar'14.

At the time of booking, since it is the expense of Prior year hence the narration should be:-

Being electricity expenses paid for the month of Mar'14.

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