Prior Period Expense

Hi, that’s a nice one, the problem is prior period items arising due to errors or omissions will be accepted here and as per AS 5.18 ‘Prior period items are generally infrequent in nature and can be distinguished from changes in accounting estimates. Accounting estimates by their nature are approximations that may need revision as additional information becomes known. For example, income or expense recognised on the outcome of a contingency which previously could not be estimated reliably does not constitute a prior period item.’ But you have a provision for that and if you can explain why they were not accounted for, doubtful invoices, there will some other standard which will cover it. 

I have a good example here at source tax guru website with title ‘accounting adjustments of prior period errors and missions’

you crated a provision because outflow is probable or maybe kept it under suspense account. Once you reverse the provision, 

Purchases a/c 2300000

To Payables a/c 2300000

then you cleared

Payables a/c 23,00,000

To Bank a/c 15,00,000

To Provision 8,00,000

now you have reversed it 

Provision a/c 8,00,000

To Bank a/c 8,00,000

thereby settled the whole amount, coming to taxes, you calculated 30% corporate tax n 15 lakhs only and now, you have to calculate the tax on 8,00,000₹ and file for it the usual way