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Accounting for audit or prof fees

Others 706 views 1 replies

hi friends,

in case of audit or prof fees ,a provision is made at the end of the year.So my query is that when payments are made it is not against the bill but against the provision made.Thus , how the bills provided by the C.A  be accounted.please reply asap............

 

regards,

nitin 

Replies (1)

The total expenditure is debited to P&L account.  On this TDS is made if applicable & in the B/s the TDS payable is shown to TDS account & prof fes payable is shown to the auditor's account.  thus the total bill is the amount inclusive of TDS.

Now TDS provided for Mar is required to be paid on or before the due date of filing the I-T return in the A.Y. & the balance amount is paid to the auditors in the subsequent year  after finalizing the accounts & submitting the audit report.


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