Provisions
This query is : Resolved
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 )
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 )
17 July 2015
provisions on sales a/c
to p n l
it will be c/f in bal sheet
to p n l
it will be c/f in bal sheet
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
I think its not correct sir.
correct me if i am wrong
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