Tally Entry On Accounting Payables

Dear Sir/ Mam

The Expenses of Security RCM Accured on March 2023 but the bill is received on 1.4.23 (next FY) and Accounted in Tally as current yr Expense and rcm is paid accordingly and also

Last year's march month office Manitanence are not kept as payables rather paid in the current yr and booked as expenses for the current yr.

Kindly Clarify what to do with these kinds of transactions while Auditing?

Replies (2)
Quick Summary
This discussion addresses a common accounting challenge in Tally: how to handle expenses accrued in one financial year but billed and paid in the next. It specifically questions the correct treatment of security RCM and office maintenance expenses when the bill arrives after the financial year-end. The core issue is ensuring accurate reporting of payables and expenses during an audit, especially when invoices are booked in the wrong period.

Booking of payables invoice plays a very crucial role in ascertaining the outstanding of the creditirs bills.

Expense headc. Dr.

Cr. Party account.

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