In f.y. 2008-09 Proviion for expense was done in the p & l A/C was rs. 20000/- but in f.y. 2009-10 actual expense incurred Rs. 18000/- so how should I treat remaining RS. 2000/-
How should I acoount it in the books os accounts of f.y. 2009-10.
07 May 2010
Dear Shving, At the time of income tax computation , only that provision of expenses is add back , which are allowed paid basic like bonus, leave encashment. Here it is the case may be related to any expesne like telephone exp, power exp etc. As per my opinion, current year expenses will be reduced by such amount which is already claimed in last year. Other expert's views are solicited.
07 May 2010
Yes .. i agreee.Mr. Bansal. i confirm that for provisions. But in this year expenses wont be reduced but it should be credited to P*L account as excess prov written back.
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