Provision or liability

It is a liability because you may not have actually spent the amount but the expenses has been incurred for the month of march but is payable in the month of april.

its liablity due to its certain nature even though amount is uncertain.

When you receive a phone bill and you haven’t paid for it then you should add that under Current liabilities..........!

It is liability as the expense has already been incurred but the payment is to be made, since it is short term as per schedule 3 of the companies act 2013, it will be under CURRENT LIABILITIES-Short Term Provisions.

But at the end of day of 31st march we have not Received Invoice.At 31st we are just estimating the amount of expence.

I want to ask,at which point of time we should classify it in liability or Provison.

Because at the end of 31st we have not any fixed amount of Exp,then it may be a provison only

but after receiving invoice but before finaliation of account we may say it a current liability.