Telephone expenses

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We can provide estimated amount of provision for such expense.
Replies (40)
We can provide estimated amount of provision for such expense.
Every one is right.. it's just the situation with which answer will vary.. u can book provision on estimated basis if the bill is not received well in time.. and on actual basis if received timely..

"Dear Members X Ltd. normally gets a telephone bill between the range of Rs. 2000 to Rs. 3000 p.m. Now for the month of March, it has yet to receive the bill which it will normally receive in April. Telphone bill is related to March which will come in April and X Ltd. also doesnt know how much bill will come. What journal entries shall X Ltd. pass in the month of March? 

 

If Bill date in April & Bill period of March so entery will be as :

1. JV on 31st March - Telephone Expense A/c   Dr.

                                         Expenses Payable A/c    Cr. 

 (Narration must be shown proper peroid & expense Name (A/c)

 

2. Payment Voucher in April- Expenses Payable A/c Dr.

                                                       Bank/Cash A/c            Cr.

 (Narration must be shown proper peroid & expense Name (A/c)

 

  

 

P&L app a/c dr. To provision for telephone exp a/c (By Rs.3000)

I think this type of entry posted not only Year end but also in every month end close.

Here we put a journel enty showing.

Telephone Exp account Dr 

     To   Telephone Exp payable.

You can show an approximate amount in it. That can be udjusted in next month, by the following journel entry

Telephone Exp payable. Dr

Telephone Exp account  Dr  (this is added when your provisional entry amount less than actual exp)

    To   Cash/Bank A.c

          Telephone Exp account  (this is added when your provisional entry amount is more than actual exp )

 

 

Anirudh's entry is correct. I think you made a mistake in reading the comment.
My Quistion is if we received bill of telephone with service tax & paid the bill.....so can i get credit of service tax or back.... pls refer me urgently........

ya ofcause, you can take the service tax input from all type telephone bill like. BSNL, Airtel, Idea etc

As per AS-4 issued by icai require that if event occured between the balance sheet date and date of approval by bod if situation exists on balance sheet date provision is require.in this situation exists on balance sheet date so provision is require that telephone exp a/c dr to payable a/c
As per AS-4 issued by icai require that if event occured between the balance sheet date and date of approval by bod if situation exists on balance sheet date provision is require.in this situation exists on balance sheet date so provision is require that telephone exp a/c dr to payable a/c
Provison entry should be done in the month of march. In case bill receive in april


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