I want to know how we shall book audit fee provision entry & provision some other expenses (like freight/ cartage which services taken in March'18 but invoice will be received in November and December 18) in our books for Financial year 2017-18 on 31-03-2018, as audit fees bill received after audit from our CA who is registered and will charge GST in bill.
Before GST we were book simple journal entry - Dr. Audit Fees & Cr. Audit Fees Payable and Freight expenses DR. , Expenses payable CR.
So,Please clear after GST what will be the entry in books on 31-3-18 for theses provisional expenses related to March 2018 but bills will be received in November and December 2018 from a registered GST service provider.
21 December 2018
You should make year-end provisions like before. Provide only the expense amount, not GST. Invoice, when received, can be accounted for and ITC can be claimed. Expense provided earlier should be reversed after accounting of invoice, to avoid double accounting of expense.
CAclubindia
