14 October 2010
i am really confused with respect to this section first of all my question is 1)is payment treated as expenditure? 2)when there are two different bills whose sum does not exceed rs.20000 respectively and payment is made at a later date which exceeds 20000 is the expense fully diallowed 3)if A puchases goods for rs.86000 on credit on 1st may and makes payments in the following manner
1st june-rs 15000 in cash 1st july-rs.30000 by bearer cheque 1st sep-rs.41000 by crossed a/c payee cheque
then in the above case will we see each payment or will we disallow the entire expense of rs.86000 as payment is made by bearer cheque on 1st july.... please give me clarity regarding the same...
CAclubindia
