Journal Entry

Thanks to u all for being a helping hand.........

Regards,

Sachin

"""you have to pass a provision entry in march first and then in april you can adjust it with provision made.
MARCH
1. By Expense a/c...Dr.
By TDS Payable a/c(if any)
To Provision for Expense A/c Cr.
(Being Provision Created)
Expense will be transfered to P/L a/c and provision will be shown in Balance Sheet under Current
Liabilities
 
APRIL
By Provision For expense a/c Dr.
To Creditor/Bank a/c Cr. """"

I am not agrree with first entry...bcoz at the time of payment of TDS v again debit to TDS and credit to bank.. so it will show as double debit..

Make simple entry

Expense a/c ..Dr 
    To Provision for Expense A/c Cr.(Being Provision Created)
Expense will be transfered to P/L a/c and provision will be shown in Balance Sheet under Current
Liabilities

and on 1st april reverse abount entry...

and when actual bill will come then pass original entry..

If any one has different opinion let me know.

yes Dattatray in first entry we should credit TDS Payable a/c thans for correcting.

but in the entry suggested by you, can be passed only in quarter end but not in year end because as per your entry expense will be booked twice.

On 31st march 2009

Expense a/c dr.

To provision for expense a/c cr.

expense will be debited to P/L 2009-10

On 1st april 2010
 

Provision for expense a/c dr.

To expense a/c

now lets say we receive a bill on 10th april, then

On 10th April

Expense a/c Dr.

To Bank a/c Cr.

again the same expense will be debited in P/L 2010-11

also it will result in Prior Period Expense

PASS A PROVISIONAL ENTRY IN THIS CASE AS ON THE LAST DATE OF THE FINANCIAL YEAR

PROFIT AND LOSS A/C     DR.

    TO PROVISION FOR EXPENSES                                                                                                   

I want to book telephone exp provision entry for the month of March 2012? How can i pass this entry? I want record effect of service tax also in it? Should I pass entry as follows:

1) telephone exp Rs.100

to Tele exp payable Rs.100

(on 31.03.2012)

2) tele exp payable Rs.100

to tele exp Rs.100

(on 01.04.2012 for reversal of provision)

3) tele exp Rs.100

Input Service tax 10

to mtnl no.000012 Rs.120

(for booking march bill on 05.04.2012)

4) Mtnl 0000012 Rs.120

to Bank Rs.120

(on 06.04.2012 to make payment)

Does all above entrries are right?

I want to book telephone exp provision entry for the month of March 2012? How can i pass this entry? I want record effect of service tax also in it? Should I pass entry as follows:

1) telephone exp Rs.100

to Tele exp payable Rs.100

(on 31.03.2012)

2) tele exp payable Rs.100

to tele exp Rs.100

(on 01.04.2012 for reversal of provision)

3) tele exp Rs.100

Input Service tax 10

to mtnl no.000012 Rs.120

(for booking march bill on 05.04.2012)

4) Mtnl 0000012 Rs.120

to Bank Rs.120

(on 06.04.2012 to make payment)

Does all above entrries are right?