Exp booking
This query is : Resolved
21 July 2020
i have received a bill dt 20.04.20 & service period is 15/3/20 to 14/04/20, so please tell me how to book exp in books & in which year it would be book
26 July 2020
Dear Rishi
There are two ways of recording the transaction.
1. You follow the cash basis of accounting: Under this, the expense will be booked on the date of payment made, meaning thereby if you have made the payment on or before 31st Mar 2020 it will be the expenditure of F.Y. 2019-20. On the other hand, if payment is made on are after 1st April 2020 then expenditure will be booked in F.Y. 2020-21.
2. You follow the accrual basis of accounting: In this case, irrespective of the date of payment, you will make provision for expense pertains to period 15/03/2020 to 31/03/2020 in F.Y. 2019-20.
There are two ways of recording the transaction.
1. You follow the cash basis of accounting: Under this, the expense will be booked on the date of payment made, meaning thereby if you have made the payment on or before 31st Mar 2020 it will be the expenditure of F.Y. 2019-20. On the other hand, if payment is made on are after 1st April 2020 then expenditure will be booked in F.Y. 2020-21.
2. You follow the accrual basis of accounting: In this case, irrespective of the date of payment, you will make provision for expense pertains to period 15/03/2020 to 31/03/2020 in F.Y. 2019-20.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- SEC 54 OF IT ACT
- Is Aadhar PAN linking required for opening bank account?
- Where to show the RCM on Rent paid to unregistered landlord
- Form 26QB for TDS on property
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Whether still royalty
- Payable outstanding for years disallowance
- BLOCKED-INELIGIBLE GST CREDIT
- Amendment of September 2021 Invoice
- Residential status for filling income tax returns in India
- Deemed to be University shall pay gst on Bus fee collection from students
- Section 194LBB
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
