Purchase bill to come show in P&L
This query is : Resolved
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.
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.
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
Read more at: https://www.caclubindia.com/experts/details.asp?mod_id=2813239
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.
### **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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Gift of mutual fund units to daughter
- Under construction property in ITR
- PPF interest-As Exempt Income disclosure
- Reporting of STCG on Property in ITR
- Upload Level ValidationITR3Category of Defect B/D
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Building tax payment deduction in rental Income
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
