Provision for expenses entry

Hi,

Please let me know what are the entries to be passed for booking provision for expenses.

Can we allocate/credit the amount in party/vendor account, if we know the party/vendor name??

Replies (4)
Quick Summary
This discussion clarifies the accounting entries required for booking provisions for expenses. It confirms that you can indeed allocate and credit the provision amount directly to a specific vendor or trade payable ledger if the vendor is known. The entries involve debiting the expense account and crediting the vendor's account, with considerations for whether this is for month-end closing or year-end adjustments.

Yes . You can allocate to Vendor or Trade Payable Ledger
Is it month end closing or others?
If it is month end then it clear but it might be year end which has ambiguity
Expense Dr
To Party Name

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