Provision for audit fees and accounting charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2019 Sir,
There is a Provision for accounting charges of 18000 and provision for audit fees of 23000 as on 31/03/18
Now in F.Y 18-19 Bill of 21240 of accounting charges(difference is of CGST and SGST) of F.Y 17-18 is received and Bill of 23600 for audit fees is received and payment for above bills is made in sep 2018.Now I would like to know the correct accounting entry in both the F.Y?
Thank You

Ravikant

Ravikant (Expert)
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08 January 2019 You will have to pass a journal entry to record only the CGST and SGST of the invoice as the expenses were already booked in FY 2017-18. Debit the provisions, Debit both CGST receivable and SGST receivable and credit the 'creditor parties' account with the total amount.

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2019 But sir this a pvt ltd co. then in that case also I have to show CGST and SGST receivable?and I passed the following entry in F.Y 18-19 as this is the case of short provision
Accounting charges payable a/c Dr 18000
Accounting charges A/c Dr 3240
To Bank A/c 21240
showing net effect of the entry and same in case of audit fees.
Audit Fees payable a/c Dr. 23000
Audit Fees a/c Dr. 600
To Bank a/c 23600
Plz correct if I am wrong.

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