Purchase bill to come show in P&L

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This query is : Resolved

Quick Summary

If 'Purchase Bill to Come' is showing in your Tally ERP9 Profit & Loss account, it's likely due to incorrect accounting. This amount should be treated as a liability and appear on your Balance Sheet. To fix this, create a 'Provision for Purchases' ledger under Current Liabilities and make a journal entry to debit your Purchase Account and credit this new ledger. When the actual bill arrives, debit the Purchase Account again and credit your Supplier's Account.

manjeeta modi

manjeeta modi (Querist)

29 October 2020 hello all,
We are using tally ERP9. and also main inventory in this.
we are face problem that is "purchase bill to come" show in Profit & loss A/c
we want to remove this.
kindly help us.

manjeeta modi

manjeeta modi (Querist)

01 March 2021 hello all, We are using tally ERP9. and also main inventory in this. we are face problem that is "purchase bill to come" show in Profit & loss A/c we want to remove this. kindly help us

Read more at: https://www.caclubindia.com/experts/details.asp?mod_id=2813239

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

10 August 2024 In Tally ERP9, if you are seeing "Purchase Bill to Come" reflected in your Profit and Loss Account, it's likely due to incorrect accounting treatment or the need for adjustments in your accounting entries. Here's how you can correct it:

### **Steps to Correct Purchase Bill to Come in Profit & Loss Account:**

1. **Identify the Problem:**
- Ensure that "Purchase Bill to Come" is a liability and should not be reflected in the Profit & Loss Account. It should be shown in the Balance Sheet under Current Liabilities.

2. **Check Your Accounting Entries:**
- Ensure that you have correctly recorded your purchases. Purchases should be recorded in the Purchase Account or appropriate expense account.

3. **Create or Adjust the Provision for Purchases:**
- To show "Purchase Bill to Come" properly, you need to record it as a liability.

**a. Create a Provision for Purchases Account:**
- Go to **Gateway of Tally** → **Accounts Info** → **Create Ledger**.
- Create a new ledger with the name "Provision for Purchases" under the group "Current Liabilities."

**b. Make the Journal Entry for Provision:**
- Go to **Gateway of Tally** → **Accounting Vouchers** → **Journal**.
- Create a journal entry:
- **Debit** the Purchase Account with the amount of the bill.
- **Credit** the "Provision for Purchases" account.

This entry will move the purchase amount from the Profit & Loss Account to the Balance Sheet under Current Liabilities.

4. **Adjust Purchases When Bills Are Received:**
- When you receive the actual bill:
- **Debit** the Purchase Account with the amount of the bill.
- **Credit** the Supplier’s Account (or Cash/Bank if paid).

5. **Reconcile Your Accounts:**
- Ensure that the Provision for Purchases account is reconciled and cleared once the actual purchase bill is recorded. This ensures that the liability is accurately represented.

6. **Review Reports:**
- After making these changes, review the Profit & Loss Account and Balance Sheet to ensure that the "Purchase Bill to Come" is reflected under Current Liabilities and not in the Profit & Loss Account.

### **Example of Entries:**

**Provision for Purchase:**

| Account | Debit | Credit |
|--------------------------|-----------|-----------|
| Purchase Account | ₹50,000 | |
| Provision for Purchases | | ₹50,000 |

**Actual Purchase Bill Received:**

| Account | Debit | Credit |
|--------------------------|-----------|-----------|
| Purchase Account | ₹50,000 | |
| Provision for Purchases | | ₹50,000 |
| Supplier’s Account | | ₹50,000 |

These steps should help you ensure that your "Purchase Bill to Come" is accurately reflected and not erroneously shown in the Profit & Loss Account.

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