Narration of provision

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bishal (Querist)

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)

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)

10 April 2014 can u plz clear this . not able to understand

Sandeep Dharar

Sandeep Dharar (Expert)

10 April 2014 In which part there is query?

bishal

bishal (Querist)

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)

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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