Dear Friends,
We have contracted two consultants for 1 and half months statring from 29th of March 2016 till 10th of May 2016. now as their contract came to an end, we are processing their payment and here i am facing a confusion. should we book their remuneration for 2 days in March itself or is it ok to book entire amount while paying them.
Request your guidence.
Thanks in advance
Accrual is one of the fundamental assumptions as per Accounting Standard - 1. The said expense have accrued in the month of March 2016. So it should ideally be recorded in the same month.
If it is recorded in the month of May 2016, it will result in deviation from the Accounting Standards.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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