Accounting for future expenses

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CA Rajesh Upadhyay (Querist)
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03 July 2012 Hi,

There is an Expense of Rs.100000 for which bill received in 29/03/2012, but exp. is related to May,2012, also for which payment is made in May, 2012.

So, any entry require to be pass in March 2012 as the bill date is 29/03/2012.

Sanjay Chauhan (IFRS)

Sanjay Chauhan (IFRS) (Expert)
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03 July 2012 Not sure how a bill is received 2 montsh in advance.

In any case, it will be accounted only in one scenerio ie If the entity has given any money against that, it will be accounted as an advance in the balance sheet till the work is done for expensing the same in P&L