My assessee has overbooked expense in the last year P/L A/c via rent of exhibition for 1,50,000/- which includes 10,000/- refundable security. Accounting entry for refundable security was not passed in the last year & the same has been received in this year.
What should be the correct accounting treatment in this year. anyone plz suggest.
Regards
As per AS-5 it is a prior period item due to made error in past period you can rectify it by reversal of rent expenses of Rs. 10000 and recognise it security amount and show in balance sheet in current year.
Thanks
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