P&l a/c
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 October 2012
Dear Sir,
Suppose, salary paid to employee Rs. 10000/- per month, however the salary of March 2012 was paid in the month of April 2012. If the assessee opts marcantile system, then he should put Rs. 110000/- in his p&l a/c and rest Rs. 10000/- put in the liability side of balance sheet
or
he should put whole Rs. 120000/- in P&L a/c and also put Rs. 10000/- in liability side of balance sheet.
Please advise me, which way is right.
Suppose, salary paid to employee Rs. 10000/- per month, however the salary of March 2012 was paid in the month of April 2012. If the assessee opts marcantile system, then he should put Rs. 110000/- in his p&l a/c and rest Rs. 10000/- put in the liability side of balance sheet
or
he should put whole Rs. 120000/- in P&L a/c and also put Rs. 10000/- in liability side of balance sheet.
Please advise me, which way is right.
26 October 2012
Mercantile system is accruing the income & expenses as and when they incurred, so March Salary has to be accounted as expenses and debit in P&L and show as liability under balance sheet also. your second way is right
27 October 2012
First try to understand the meaning of Mercantile System. This means all expenses whether incurred or not but have become due for payable either during the year or next year. So you have to include full 12 month's salary and provide for 1 month's salary as liability
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
- Opting our of sec 44AD
- Form 121 & TDS deduction
- GST Treatment of Insurance Commission for Existing GST Holder
- Inter corporate deposits
- Invoice V/S Goods receipt Note Date
- Regarding appeal to GSTAT
- Multiple trade mark
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- LC charges in relation to Asset purchased should be Capitalised ?
- Transporter Declaration form
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
- Clarification Required on GST Rate & HSN Classification – Millet-Based Probiotic Drink
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
