Error in previous year balance sheet

Hi,

It should be accounted as Prior Period expense in Current year's financials.

Regards

Sanjay Lalwani

I am new in accountancy. An example will be very helpful. I m using Tally 9 erp.

Pass this entry.

Prior period Expense A/c..Dr.      1000

To Cash/Bank A/c.                         1000

(Write in narration nature of expense and period for which it relates to)

Hello,

Thanks for the reply. What should be the head of Prior Period Expense? Indirect Exp or Capital ?

Regards

Indirect Expense.

Thank you so much for the help Mr.Sanjay

Regards

Shahid