Hi all,
I enrolled for PE2, switched over to IPCC and now converting to Intermediate. I am also a working person and facing a typical situation, which needs your somewhat elaborate guidance.
During June 2021, I submitted some expenditure bill pertaining to FY2020-21, for which our accounts department denied payment saying not possible to book this expenditure as no provision was made in FY2020-21 books and books for FY2020-21 were also closed in the month of May 2021, so not possible to make payment of this expenditure.
In July 2021, I realised some income from one organisation towards commission, for which no provision was made in accounts during FY2020-21. But it got booked. Similarly, in August 2021, I realised some commission from one more organisation, more than the provision, which also got booked by our accounts.
When income realised pertaining to previous FY, where no provision made or in excess of provision, they are booking that income and when came to expenditure part, denying payment saying no provision made and hence not possible to book that payment.
Today, I submitted another expenditure pertaining to H1 of this current financial year. For that also, they denied payment saying half yearly accounts already closed and not possible to book this expenditure. There are few incomes, which yet to be realised, definetely in excess of the provision. Undoubtedly, they book that income also after realisation but cannot deny such receipt.
Can you please guide me, is this correct practice from audit point of view and what are the remedies, if truly these are audit objection. Requesting your valuable and elaborate guidance please to take up with our accounts people submissively.
CAclubindia
