EXPENDITURE WHICH PAYMENT IN APRIL RELATING TO MARCH LIKE : ELECRICITY EXP, TELEPHONE EXP, MOBILE EXP, RENT, CONSULTANCY FEES WHICH GONE MONTHLY (QUARTLY), AUDIT FEES PROVISION, MCA EXP PROVISION, SALARY PROVISION. IN SHORT IT MAY BE SAY SUCH TYPE OF EXP WHICH ARE BEARED MONTHLY BASIS.
08 May 2009
actually I wanna know the accounting treatment for that
is it
expense a/c dr to expensepayable or
p/l a/c dr to expensepayable
and suppose there is provision for rs 2000 and actual exp is rs 1000 then what will be accounting treatment for that
is it
expenspayable a/c 2000 to cash 1000 to expenses 1000 or
expenspayable a/c 2000 to cash 1000 to p/L 1000
and suppose this exp is relating to FBT then at which amt FBT will be paid and whaen it will be paid
2)if such exp is relating to freight then it's our liability to pay service tax then what will be the amt of service tax and when it will be paid
3)if such exp is only in this accounting year and will not occur in next year and we are crediting exp a/c then how we can show expense a/c with credit balance in next year p/L a/c
09 May 2009
Also, if you don't want the refund of FBT, the liability of the next year would automatically would be reduced on account of writing back of excess provision.
I JUST WANNA ASK A QUERY THAT IF A COMPANY HAD ANNOUNCE TO GIVE A GOLD COIN ON PURCHASE OF TWO KG OF MATERIAL BUT DUE TO INCRESE IN PRICE COMPANY PAY AMT @ 1200 PER GOLD COIN. IS COMPANY LIABLE FOR FBT OR NOT
ANOTHER QUERY IS THAT ABOVE EXP IS RELATED TO PREVIOUS YEAR THEN AS PER RULE SUCH EXP IS NOT ALLOED IN BOOK UNDER PRIOR PERIOD ITEM THEM IF WE DISALLOW SUCH EXP THEB WHAT ABOUT EXP AND FBT FOR THAT
IF COMPANY IS HAVING DEVELOPMENT TRAINEE .WORK OF THEM IS JUST GO TO FIELD AREAS AND GO TO CITES FOR THE DEMONSTRATION FOR THE PESTISIDES COMPANY . FOR THAT THEY ARE GETTING SALARY AND OTHER EXP LIKE TELEPHONE UPTO RS 300 AND SOME OTHER EXP .BUT THEY ARE NOT PAID DIRECTLY BY THE COMPANY BUT COMPNAY'S PARTY(DEBTOR/DEALER)AND COMPANY IS ISSUING A CREDIT NOTE IN FAVOUR OF THAT DEALER/DEBTOR AND COMPANY IS BOOKING TOTAL EXP AND SALARY UNDER THE HEAD OF SELLING AND DISTRIBUTION EXP
MY QUERY IS THAT COMPANY IS LIABLE FOR FBT ON TELEPHONE AND HOTEL LOGING BOARDING OR NOT BECAUSE IT IS JUST LIKE REIMBURSEMENT TO DELEAR BUT THERE IS A CONTRACT BETWEEN COMPANY AND DEVELOPMENT TRAINEE
BUT IF WE ARE NOT LIABLE FOR FBT THEN IF THERE ANY LIABILITY FOR COMPANY TO DEDUCT THE TDS OF DEBTOR 0R DEALER
SHOULD DEALER OR DEBTOR SHOULD PAY THE FBT FOR SUCH EXP
BUT THERE IS PROVISION THAT WE SHOULD NOT DEDUCT TDS ON ACTUAL REIMBURSEMENT 0F EXP IF HE IS ISSUING SEPERATE BILL FOR THAT.
ABOVE EXAMPLE IS ALSE REIMBURSEMENT TO PARTY OR DEALER
I WANNA KNOW IS THERE NO LIABILITY FOR FBT AND DEDUCTIN TDS FOR THE COMAPANY AND WHY
I JUST WANT TO KNOW IN DETAIL AND NEED A QUICK ANSWER
CAclubindia
