When to record exp in books?????

Ankit (C.A.-Student) (680 Points)

18 June 2010  


my query is a bit hypothetical but i have seen this kind of accounting & confused as to when to record the expenses.

expenses chronological order is as follows( normally it does not happen but with cartain changes, i have made it worst case)

01-jun --exp incurr by Employee on Co. behalf, exp paid by his own pocket

03-jun--employee make  voucher & get his HoD/Project manager(senior) approval

06-jun--employee present voucher in finance for claim/reimbursement

08-jun--approved by accountant/senior manager finance( Co. policy)

10-jun--approved by Director Finance

12-jun--amount paid to employee

now in above case when to book expense in books of accounts on 1 june or 12-june?

Incase of acquiring fixed asset when to book/capitalise? If we book on 12 june, then depreciation to be taken from 1-june or 12-june?


please help me in this matter and also suggest, if anyone find this is worst case, what kind of best approach/policy to be adopted by company(PVT LTD.)