Journal entry

This should be treated as per the AS 5 Net profit or loss for the period, Prior period items and changes in Accounting policies.

Any error or ommision of past year come to known in current shall be recorded as prior period item in current year in Statement of P&L seperately shown as Prior Period.

Expenses Booked in 13-14 Rs. 740691/-

Actual Expenses in 15-16 Rs. 600000/-

Difference of Rs. 140691 should be credited in current year F.Y. 15-16 and to be shown as seperately as Prior Period Item.