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Accounting procedure of invoice received in the following month of expenses related to march

VIJAY KUMAR (ACCOUNTANT) (35 Points)

13 November 2018

Dear Sir/Madam,

We are receiving courier services from DTDC to deliver goods to our customers. My query is they are giving invoice on the 1st of following month. Eg. If they provide courier services of 1st march 2018 to 31st march 2018 they are providing invoice on 1st arpril 2019. In this case how can we record accounting entries without conflicting the accrual system and gst

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4 Replies

Charan Raju (132 Points)
Replied 13 November 2018

Hi,

You can record an accrual entry for the same in March and reverse it in the begininng of April.

Please let me know, if you need any further clarifications

Thanks.

VIJAY KUMAR (ACCOUNTANT) (35 Points)
Replied 13 November 2018

Can you please provide me the entries for that with gst

VENKAESHA K S (ACCOUNTS AND AUDIT EXECUTIVE ) (38 Points)
Replied 13 November 2018

Hi,

For march Month Expense ur Paying In April then u Can Show It As A Provision In Liability and expenses in march month

Entry

Coririer Expenses A/c Dr (expense on P AND L)

to Courier Expenses Payable Account(Liability On provision)

VIJAY KUMAR (ACCOUNTANT) (35 Points)
Replied 15 November 2018

Ok, Please provide entries with gst. If Taxable value is Rs.10,000/- then gst @ 18% i.e, cgst-Rs.900/- and Sgst Rs-900/-. Now provide entries for this for my above query. And also tell me in which month can i take input of gst for this bill. As of my knowledge gst input can be taken on the basis of invoice date. So in this case expense related to march and invoice received in april. Please provide entries for this with gst nd also tell me itc claim