Wrongly made provision

252 views
User Avatar

4 Points Posted on 15 September 2020
hello sir, I have one query last year wrongly made provision now I want to correct this provision how to pass correct entry in current year.
0 Reply Share Follow
On 15 September 2020 at 21:35 Report
Replies (3)
Quick Summary
If you've made a provision incorrectly in a previous year, the solution is to reverse the incorrect provision in the current year. You can then pass a new, valid entry. Alternatively, if the provision relates to an outstanding liability, you should pay the due amount.

User Avatar

Audit & Assurance
13864 Points Posted on 16 September 2020
If the provision is created for the previous year, you need to reverse the provision in the current year and create new provision or in case of outstanding liabilities pay the due amount.
Reply
On 16 September 2020 at 11:29
User Avatar

4 Points Posted on 16 September 2020
👍🙏🙏
Reply
On 16 September 2020 at 20:13
User Avatar

67 Points Posted on 16 September 2020

Provision A/c- Dr.

To Profit and Loss Account

Reverse the provision- simple and create a new valid provision

1 Reply
On 16 September 2020 at 20:32

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Foreign remittance
  2. Affordable Residential Flats in Gurgaon
  3. Manufacturing
  4. TAN REGISTRATION ON E-FILLING SITE
  5. Form 10-IEA – Continuing Old Regime
  6. Income tax act 2026
  7. Belated Return where Form 10IEA filed this year to
  8. GST Reconciliation Tool (2A vs Books) - looking fo
  9. TDS ON PF FORM 19 WITHDRAWAL
  10. Can a virtual office in Mumbai be used for company

More recent discussions | Post

Related Topics :

Loading