Reversal of cost to Balance Sheet

Originally posted by : Jayanta Bandyopadhyay
	Sir   Wrongly charged to P & L from bank book in 2020. Regularisation in 2024   Pl guide vis a vis AS. PRIOR PERIOD ADJ AND TAX AUDIT

Bro,

Please give that wrong entry posted in 2020.

Please give the actual voucher entry here 

Export exp Dr

To Bank

P & L Dr

To Export exp

Wrong Entry

Export exp Dr

To

Bank

Dr. Expense

Cr. Bank

(Wrong entry)

So correct it

Dr. Prepaid customs

Cr. Bank

(Correct entry)

Then create a provision

Dr. Provision expense

Cr. Provision liability

When you won the appeal reverse it.

Then add it to asset

Dr. Asset

Cr. Prepaid customs

Check if you can change it on your system. I think you have audited them and hence the problem.

If you have lost the appeal

Dr. Provision liability 

Cr. Repaid customs

My entries don't disturb bank. Use prior period changes standard and I think it could fall under retrospective changes. Make clear narrations. 

Originally posted by : Jayanta Bandyopadhyay
	Export exp Dr To Bank   P & L Dr   To Export exp

Well...

Now, You will collect two amounts like Deposit amount and Appeal amount... Right...??