Accounting Rule

The user is seeking clarification on processing a conveyance allowance for the 2020-21 financial year after the balance sheet was closed on 31st May 2021. They question why previous year expenditure cannot be processed if the balance sheet is closed, while income from the previous year realised after closure can be booked. Guidance suggests that expenses might be recognised if the balance sheet hasn't been approved by directors, otherwise, they may need to be booked in the next financial year, potentially via a 'prior period expenses' account.