Provision for exp. of audit fees

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This query is : Resolved

SAMIR DESAI (Querist)

21 March 2012 Dear Sir,

If i want to provision for exp. of audit fees of Rs.25000 & legal fees 100000/- for 31-3-2012 than how pass entry in tally for f.y.2011-12

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)

21 March 2012 you have to pass journal entry in F7

Debit AUDIT FEES ACCOUNT - 25000
DEBIT LEGAL FEES ACCOUNT - 100000
CREDIT TDS PAYABLE ACCOUNT - 10000
CREDIT LIABILITY FOR EXPENSES 115000

PLEASE NOTE THAT TDS IS TAKEN ONLY ON LEGAL FEES . SINCE AUDIT FEES IS BELOW 30000 NO TDS IS DEDUCTED. BUT IF YOU ARE PAYING AUDIT FEES AND LEGAL FEES TO SAME CONSULTANT/ AUDITOR THAN TDS IS TO BE DEDUCTED ON COMPLETE 1.25 LAKHS

SAMIR DESAI

SAMIR DESAI (Querist)

21 March 2012 AUDIT FEES GOING IN INDIRECT EXP. & lIABILITY FOR EXP. GOING IN WHICH HEAD,& WHEN I MAKE PAYMENT OF AUDIT FEES & LEGAL FEES THAN HOW PASS ENTRY IN NEXT F.Y.

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)

21 March 2012 liability for expenses shall be in Current liabilities as provision for expenses / liability for expenses.

when the payment is made
LIABILITY FOR EXPS. DEBIT
CASH / BANK -CREDIT

SAMIR DESAI

SAMIR DESAI (Querist)

21 March 2012 me pass entry in 31-3-2012 than his reverse entry made in 01-04-2012