Prior period Entry

If AS 5 ( Accounting standard) is applicable and permits, then you Can make prior period expenses entry in the Current period, You have to show separately in Profit and Loss account ( Check AS5)

Entries as follows.

prior period expenses A/c Dr
To Cash / Bank A/c Cr
( Last year expenses)


Profit and Loss A/c Dr
To Prior period expenses A/c Cr
( Transfer entry to P&,L A/c )

Such type of expenses you may not get deduction under Income tax Act .

Find out what is India's audit threshold is and change accordingly. 

Follow as 5