Dear All,
I have a doubt regarding the expense to be account. I have received telephone bill for the period of march'18 (1st to 31st March'18) but bill date is April 1st 2018.
Please advise for which FY we need to consider the expense. And in which Fy I need to book the expense.
With Advance thanks
Pradeep Kumar T V
Account as per bill date...
Thank you sir.
In case of Accrual Basis of Accounting
You need to make a Provision for Telephone Expense in F/Y 2017-18 and Reverse that Provision in F/Y 2018-19.
As Period of Telephone Bill Relates to F/Y 2017-18 i.e; on 1/04/2018 ( Date of receiving Telephone Bill ).
In case of Cash Basis Accounting
Record as on 01.04.2018 ( Date of receiving Telephone Bill ).
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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