Account treatment

This query is : Resolved

Yousuf Ali SIlawat (Querist)
Follow

06 December 2010 We have paid professional fees Rs. 6500/- related prior period expenditure.
Please let me know how to book prior period? & TDS will applicable?

CA Anisha Ray

CA Anisha Ray (Expert)
Follow

07 December 2010 Your question is not very clear. Rs. 6500 is a prior period expense or it is current year expense for some prior period work.
If it is for a prior period you could simply pass an entry,

Prior period expense A/c ....Dr. 6,500
To Bank or Creditors A/c 6,500
The Prior period account being a P&L account.
Since the expense is below 10,000/- no need to deduct TDS. however, if the fees is from some professional who has raised other bills also and cumulatively it is more than 20,000/- TDS will be applicable @ 10%.