Avail 20% discount on updated CA lectures for Dec 21 .Use Code RESULT20 !! Call : 088803-20003

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Pardeep (Accountant)     05 August 2021

Expenses payable

Can we book expenses payable or prepaid exp. In school/ trust accounting?



 7 Replies

ASIF ALI MEMON

ASIF ALI MEMON   05 August 2021

YES IT PERTAINS IN MATCHING PRINCIPAL OF FINANCIAL ACCOUNTING

Sourav

Sourav (Student)     05 August 2021

Follow mercantile accounting system
Nidhi

Nidhi (Chief Accountant)     05 August 2021

Yes, you can if following mercantile system
Rama chary Rachakonda

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)     06 August 2021

Method of accounting for an education trust is cash system. You should accounted the expenses and Income when they are paid/ received so there are no journal entries. Receipt & payment account and Income & expenditure account are the final accounts (instead of Trading & Profit Loss account). you should maintain : Cash book Ledger  Fees register Salary Register other register as per requirement.  
 

Pardeep

Pardeep (Accountant)     06 August 2021

Dear Rama Sir

but how to treat AMC which is from july'21 to June'22 because from july to march is current year exp. & from april to june'22 is for next year. same as telephone exp. which is payable in march but we paid it on april or may?

 

Rama chary Rachakonda

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)     06 August 2021

debit the telelphone charges also as and when you pay 

Sourav

Sourav (Student)     08 August 2021

Create an provision account of AMC and book expensive when it will incurred

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Related Threads


Loading
Start a New Discussion

Popular Discussion


view more »







Subscribe to the latest topics :
Search Forum:

Trending Tags