what enteries to be passed in account books for provision of expenses. suppose we have not recd. invoice of CA , Travelling expenses statement from sales person, electricity bill, etc. , then to aacount for such expenses what should we do ?
what enteries to be passed in account books for provision of expenses. suppose we have not recd. invoice of CA , Travelling expenses statement from sales person, electricity bill, etc. , then to aacount for such expenses what should we do ?
Provisional entries
1) Audit/Accounting fee Dr
To Audit/Accounting fee payable (or provision for audit/accounting fee)
To TDS
2) Travelling Exps Dr
To Travelling Exps payable
3) Electricity Expenses Dr
To Electricity Expenses Payable
When the actual expense is being accounted, credit the provision account and debit bank/cash. Difference if any can be debited/credited to the respective expense account.
Thanks Poornima Madam.
Very well explained by Poornima.
CAclubindia
