Provision for Materials

Hi Sir or Madam

we are looking after Accounts of house keeping materials proprietor firm

i have some Idea that we can make provision for services like salaries, Monthly recurring expense

here a material worth of 10 lacs is received and advance of 10 lacs is paid however invoice is not yet received

Please advise Can I make provision for 10 lacs rupees material

Thanks in advance
Replies (3)
Quick Summary
This discussion explores the accounting treatment for housekeeping materials, specifically when a large purchase is made and an advance is paid before an invoice is received. The core question is whether a provision can be made for the material's value. Responses suggest that provisions are typically for expenses incurred within the accounting year, not future expenses, and advise on necessary accounting entries.

No...
Provisions can be make for the expenditures C in the Accounting Year...

Ex : Salary for the month of March (or Before the Months).
Not possible to make future expenses...
Yes you must pass necessary accounting entry .

I got tired of analysing this standard. Someone please post the answer or else I have to convert it to Indas because I presume there will be no tax compliances or impacts. How does this sound like.

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