30 June 2016
I've booked excess revenue in the year 2014-2015 with it's corresponding effect in debtors. In the year 2015-2016 the mistake is detected what would be the correct entry for the year 2015-2016. According to me it would be Reserve A/c Dr. To debtors Please correct me if i am wrong.
30 June 2016
Separate place is there for prior period item in P&L a/c
Querist :
Anonymous
Querist :
Anonymous
(Querist)
30 June 2016
i am very well aware of that but all i want to confirm is whether excess revenue recognised will be considered as prior period expense or not?
30 June 2016
As per Accounting standard " Prior period items are income or expenses which arises in the current period as a result of errors or omissions in the preparation of financial statement of one or more period. so ultimate effect in your Reserves & Surplus ( Retained earning only). but my suggestion it need to be routed through in financials instead of direct adjustments