Hello Friends,
My company has made provision towards Audit Fees for Rs. 10 lacs in financial year 2015-16. Entry passed was Audit Fees Dr. and Provision for Audit Fees Cr. In the computation of 2015-16, the provision amount has been disallowed and added back in profit and loss.
Now in 2016-17 we received bill from auditors for Rs. 12 lacs towards Audit fees. I am having confusion what entry is required to be passed now to close the provision and book the expense.
Thank you.
TDS has not been deducted and it would be deducted in 2016-17 as the provision was made late and TDS payment due date had already passed.
Hi,
30% on audit fees provision will be disallowed in FY 2015-16. In FY 2016-17 you have received a invoice towards professional charges for Rs. 12 lacs which means in FY 2015 -16 you have made short provision.
Find below the accounting entry in FY 2016-17.
Audit fees ( P&L) Dr 2,00,000/-
Provision for audit fees (B/s) Dr 10,00,000/-
TDS payable ( B/s) Cr 1,20,000/-
Audit fee payable (B/s) Cr 10,80,000/-
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If you need any further clarification please let me know.
Thanks.
CA.A. SHUNMUGARAJ. FCA
9865018852.
Last year audit fee ki provisional entry dali or bill abhi June m raise Kiya kya entry kru
Or meko es month input bhi Lena h jo bill raise Kiya h uska
Can anyone here solve my issue.
https://www.caclubindia.com/forum/gst-refund-under-no-change-in-pos-583383.asp
CAclubindia
