Previous Year Expense

its depen on Nature of Exps. Like Telephone , Electricity, paybale booked in march. but misc exps. due to mismanagment not booked when your balance sheet finialized. its a audit mistake avoid in future. Now book in april month.

As per AS=5, expenses for the period & income for the period is charged or credited to PL account if it is due to error & omission it is prior period adjustment & its effect required bcoz of tax purpose. In income tax those expenses are not allowed as deduction.