Query regarding unrecorded purchases

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2015 What will be the rectification entry for unrecorded purchases of PY in CY books? Does these unrecorded purchases will have any effect on opening stock? If these recorded in CY, will it be disallowed as prior period expenses or not?

Amol S Joglekar

Amol S Joglekar (Expert)

02 January 2015 what form of organisation it is?

Whether or not it will have impact on opening stock basically depends upon....if physical stock was taken on PY year end, then no impact
if logical stock was taken on PY year end, then yes....there will be impact

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2015 Disallowance will be there as Prior period item or not?

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2015 Logical stock was taken in that year. How should I deal with it now? Should I record purchase as prior period item and disallow in CY?

Amol S Joglekar

Amol S Joglekar (Expert)

02 January 2015 yes, it has to be disallowed in CY as prior period.

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