provisional entry


Rajkiran Ghosh   05 November 2018

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sir plz tell me the provisional entry of electric bill if i receive electric bill on 15 th april included gst... then what entry i should pass on 31st march and 15 th april????

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Mayur Patil (Article)     05 November 2018

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31-3
Electricity exp A/c dr.
To provision for electricity exp

When you make payment of bill
Provision for electricity exp dr.
To bank/cash

As per my knowledge distribution of electricity service is exempted in gst

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Rajkiran Ghosh   06 November 2018

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sir plz tell me if my bsnl bill is from 15 th march to 15 th april then can i take bill amount 50% last f.y. and 50% this f.y.????

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Mayur Patil (Article)     06 November 2018

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Yes we can Show proportionately.

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Rajkiran Ghosh   06 November 2018

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and sir one more thing the provisional entry should be made only on 31st march for accrual basis???

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Mayur Patil (Article)     06 November 2018

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Yes provisional entry required when accounting based on accrual base.
In cash base accounting expenses recorded when we make payment.

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Rajkiran Ghosh   07 November 2018

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sir plz tell me if i get gst bill of bsnl telephone on 7 th of every month then can i take entry in accounts on 7 th of every month and only in march 31st i will take entry???

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Mayur Patil (Article)     07 November 2018

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As per the matching concept and mercentile system the expense you incurred in any financial year those expenses you've to show in same financial year.

So, the bill of march you'll receive in april and if you pass entry in April the financial will change so that's why in the month of march provision required

In rest months question will not arise regarding change of financial year.
So you can pass J.V. 7th of every month but in March provision required

Besure you're following accrual / mercentile base accounting. This concept not applicable for cash base accounting

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Rajkiran Ghosh   07 November 2018

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ok thank you sir it is clear now

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V P Narasimhan (Accounts Manager)     08 November 2018

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Utility Bills viz., MES,Telephone & Insurance at times Interest debits after the F Y can also be considered in single a/c head such as

Provision for Expenses & if a schedule has been taken it can be set off when since paid subsquently


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