Accounting

This query is : Resolved 

27 January 2011 Hi sir/ madam
I hv query regarding accounting treatment of excess provision of expenses whether it can be transferred to respective account head for which provision was made or other account head (Liabilities written back)

Regards
Surajk

27 January 2011 It should be transferred to Liabilities Written Back A/C

27 January 2011 1. If the provision was made during the previous year, then You can do the following entry

CR PREVIOUS YEAR ADJUSTMENT A/C
DR PARTICULAR LIABILITY A/C

2. If the provision created during the current year, then You can do the following entry

CR RESPECTIVE EXPENSES A/C
DR PARTICULAR LIABILITY A/C

Thanks


28 January 2011 Thanks so much Mr Sunil ji and Mr Obulirajan
I am convinced from ur satisfactory answer.

Thanks and regards,
Suraj



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries