Provisions

This query is : Resolved

Praveen M (Querist)
Follow

17 July 2015 Dear all,

Mr X is an individual who sold the goods to customer with a warranty of 2 years. Acc to Mr X from his past experience, it is probable that there is some claim under warranty so for the same Mr X wants to create a provision of 2%

Please give me the journal entry for aforesaid provision.(Note: amount will be Rs 1000 )

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

17 July 2015 provisions on sales a/c
to p n l

it will be c/f in bal sheet

Praveen M

Praveen M (Querist)
Follow

18 July 2015 Sir if we credit the Profit & Loss A/c, it increases Mr X profit which is incorrect.
I think its not correct sir.
correct me if i am wrong

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

eddanapudi murali

ACCFIN SOLUTIONS

Amit Singh

K.M. AGGARWAL

Vinod Dharwarkar

Subscribe Now

Provisions

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

GST CONSULTANCY

CA Final

Accountant

Article Assistant