Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Accounting enteries

377 views

Save Share

uma shankar khatri

proprietor

127 Points Posted on 17 May 2021

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 ?

Replies (4)

Quick Summary

This discussion explains how to create provisional accounting entries for expenses where invoices haven't been received yet. It covers common examples like audit fees, travel expenses, and electricity bills. The method involves debiting the expense account and crediting a 'payable' or 'provision' account, with adjustments made once the actual expense is finalised.

CMA Poornima Madhava

CMA

9106 Points Posted on 17 May 2021

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.