Sales and expenses

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HI

Any  repair work carried in year 22-23 and have incurred expenses for this repairs in 22-23  and  the payment received in FY23-24  so for tax purpose for which year expeses are considered as the payment is reievd in next year 

and  when we received the payment will that year it will be considered as income   and  for which year the expenses will be taken when filing return 

Replies (2)

 

One should book expenses & incomes when the job or work happens. All the payable or receivables will remain balanced as an outstanding for the financial year if not done on that particular year .

 DEAR,

SINCE THE REPAIR WORK WAS DONE IN THE FINANCIAL YEAR  2022-23,

 THE INCURRED EXPENDITURE SHALL BE  ACCOUNTED FOR IN THE BOOKS  ON  ACCRUAL BASIS BY PASSING A JOURNAL ENTRY 

                               FY 2022-23

REPAIR EXPENSES  A/C Dr     Rs.xxxxxxxxx

TO  VENDOR   A/C           Cr:    Rs.xxxxxxxxx

AND ALSO  IN THE SAME WAY  THE CORRESPONDING REVENUE SHOULD ALSO BE RECOGNISED   

IN THE SAME YEAR ON THE BASIS OF MATCHING CONCEPT .

CUSTOMER/DEBTOR A/C                                 Dr   Rs.xxxxxxxx

REVENUE/SALE OF SERVICE  A/C                  Cr: Rs.xxxxxxxxxx

ABOVE PROCEDURE SHALL BE FOLLOWED IRRESPECTIVE OF PAYMENT RECEIPT AND INCOME TAX SHALL BE PAID FOR FY 2022-23 ONLY..

 

 

 


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