21 May 2008
if you are reverse the entry & debited to profit & loss a/c then it is treated as income of you f e salary a/c dr. 20000 salary payble a/c cr 20000
21 May 2008
generally we make provision for expenses for which 1) we are not sure about amount or 2) which are paid in next year like telephone exp. in 1)you can reverse provision entry on 01 april and can enter actual amt at the time of receipt of bill and in case of 2) no need to reverse entry, at the time of payment just debit payable a/c, which is standing in liablity.
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