HI
In Financial Year 2010-2011 i had provided provision for a cost which was not paid in that year but to be paid subsequently. so i had provided provision as expenses payable.
However in the month of april 2012 it was decided that as the goods had been lost and the customer had not paid for the invoice raised and so the supplier had also agreed that the expense need to be paid THis is because due to some complication claim of insurance was not possible. So we had to reverse /cancel the invoice. The invoice amount was INR 175000/- while the payment to vendor was INR 135000/-. How do we cancel the invoice as we service tax is already paid for the same and also supplier has deducted TDS on the same.
Further can the difference between sale amount and provision be considered as prior period expense
CAclubindia
