Can amount be paid when the liability is itself not booked

When anythin has not accrued then how come liability will arise dear.. this payment to which you are callin as pre-payment will be treated as advances as of now..

dear ajit,

as far as your query is concerned, yes you can pay off the liability before it accrues to you. but for that you have to show the amount paid in advance accont and later you can adjust such advance with the liabilty on its accrual.

cheers

ganesh agarwala

Originally posted by : Ganesh Agarwala
	dear ajit, as far as your query is concerned, yes you can pay off the liability before it accrues to you. but for that you have to show the amount paid in advance accont and later you can adjust such advance with the liabilty on its accrual.   cheers ganesh agarwala

there is no violation of AS

Any payment made before service/liability incurred/provided it is to treared as advance, show it as Supplier advance.