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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details