When preparing monthly P&L for the month of April 2019 which salary expense we will consider:-
1) Salary Booked on 30.04.19 but to be paid on 07.05.19
or
2) Salary paid on 07.04.2019 for the month of March that was booked on 31.03.2019.
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Replies (9)
If you maintain books on accrual basis then salary of April month is to be taken but if books are prepared on cash basis then salary of March month paid in April is shown in P&L Account.
company accounts are generally on accrual basis
Sir in general scenarios if we are preparing P&L for the most month of April then what we need to consider as expenses of the following:-
Salary paid in April
or
Salary booked in April
Salary paid in April
or
Salary booked in April
Salary Booked on 30.04.19 but to be paid on 07.05.19
this one will be consider
this one will be consider
Thank you raja sir
| Originally posted by : Sandeep Sharma | ||
 |
Thank you raja sir |  |
You are most welcome
You have to consider Salary booked on 30.4 & paid on 07.05 as you are following accrual basisi
| Originally posted by : CA Rashmi Gandhi | ||
|
You have to consider Salary booked on 30.4 & paid on 07.05 as you are following accrual basisi | |
Dear.,
Why create confuse to querist...
As per query the accounts following accrual basis... Bcoz, Salary booked on 30.04.... No more doubts...
Am I right...?
Yes completely agree with RAJA P M. He is right and i am writing the same thing.
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