forgotten to pass commission receiveable entry in books of account during closing of FY 2014-15 , commisson received in bank account too in the month of april 2015 and it return has also filed. Now while prepareing for IT return for FY 2015-16 it came to notice
how to deal with it in books of account??
pls reply it's urgent
Thanks in advance
Which accounting system you follow: Cash or Mercantile?
mercantile
As per law you have to revise return of ass. year 2015-16.
If amount is small and tax liability do not differ much, can credit it (as mistake) in FY 2015-16
DEAR SIR
YOU CAN DO ENTRY AS UDNER
DR -BANK (BANK)
CR- COMMISSION RECIEVED (DIRECT INCOME)
NOTE: KINDLY CHECK YOUR 26 AS FORM AND YOUR CLIENT STATEMENT BEFORE THIS ENTRY.
GOOD LUCK
You have to show that commission income as Prior Period Income in P/L and offer for tax in the current year. In practice PP Expenses are disallowed but PP Incomes are considered.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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