Purchase query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2013 if the purchase date is in previous month but the accounts department receives that bill in the next month then in which month should the entry in tally be made? pls help

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 June 2013 You can take purchase provision entry in the month of purchase and reverse the provision & book the actual purchase when you receive the actual invoice

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2013 But if the provisions entry system is not being followed by the company & direct entry of purchases sre done in tally as and when the accounts department receives the invoice is this treatment also correct..??

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 June 2013 We need to follow the accrual system of accounting. so expenses and income need to be accounted as and when they incurred. incase you are following cash system of accounting then your treatment is ok