14 December 2016
One govt company prepare monthly P&L account & doesn't record "security charges" in the month of October. But in P&L account of November record earlier exps as well as exp of November........ Does it affect matching concept..?
Is it right or wrong...?
14 December 2016
As per accrual concept of accounting, the expenses needs to be accounted in the period as it actually incurred. so the security charges need to be provided during OCT-16 itself
14 December 2016
My clients co said that without giving bill by security contractar to us, we can't know the amount of security charges........ So I think they should made provision for it in the earlier month
14 December 2016
Yes, they should create the provision for the same once actual bill received the provision can be reversed or the adjust the expense according to the actual