Prior period treatment
This query is : Resolved
Guest
Guest
(Querist)
11 August 2011
In previous year Audit report one asset is shown as Fixed Asset but it's nature is current.How will treat in current year audir report.
12 August 2011
Accounting Entries in C.Y.
1. Exp A/c Dr (Gross block)
To Asset A/c
2. Provn for Dep Dr (Dep amount of P.Y)
To Sundry bal w/ back
3. The Net block value (ie 1-2) should be disclosed as prior period expenses below B/f balance of P&L & above Appropriations
The above adjustment may suitably disclsed in Notes to A/cs. No reoprting in Audit report necessary on this issue.
1. Exp A/c Dr (Gross block)
To Asset A/c
2. Provn for Dep Dr (Dep amount of P.Y)
To Sundry bal w/ back
3. The Net block value (ie 1-2) should be disclosed as prior period expenses below B/f balance of P&L & above Appropriations
The above adjustment may suitably disclsed in Notes to A/cs. No reoprting in Audit report necessary on this issue.
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