Advance payment to commission

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2016 I HAVE PAID ADVANCE A PARTY AS A COMMISSION IN DECEMBER 2015 BUT NOW IN APRIL 2016 GET BILL FROM SERVICE PROVIDER NOW MY QUESTION IS THAT WHEN TO BOOK THESE EXPENSES IN fy 2015-16 OR iN APRIL 2016 FOR fy 2016-17, PLEASE REPLY AND ANY CONSECUNCES IF IN APRIL THIS EXPENSES BOOK , PLEASE REPLY THIS QUESTION.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
Follow

01 April 2016 if you paid advance before work or bill then it will be there at loan & advances at the end of year and in april when you entered bill amount then account will be closed. there is no Problem with that amount as you are taking in loan advances and other side that party will take as liability as advance from customer. thats it...!!!

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
Follow

01 April 2016 If the advances paid by you pertains to the work or services carried out in FY 15-16 then you have to make provision in that year only if the bill is not received or book the bill if it is received

or else go with the Opinion given by Mr. Murtaza Bhagat ji

Upgrade to CAclubindia Pro. Subscribe Now!