Extra expense claimed in Pvt ltd company
This query is : Resolved
25 December 2021
Dear Sir,
In F.Y. 2018-19 I had by mistake booked an extra entry of Rs. 50,000/- and wrongly claimed it as a salary expense in Books of accounts of a Pvt Ltd company (not under tax audit) which has resulted into mismatch in bank balance with books of accounts.
Can I reverse this entry in F.Y. 2020-21 by reducing salary amount by Rs. 50,000/- which will result in matching of Bank balance with books of accounts.
Please advise me in this matter.
Regards,
Divyesh Jain
In F.Y. 2018-19 I had by mistake booked an extra entry of Rs. 50,000/- and wrongly claimed it as a salary expense in Books of accounts of a Pvt Ltd company (not under tax audit) which has resulted into mismatch in bank balance with books of accounts.
Can I reverse this entry in F.Y. 2020-21 by reducing salary amount by Rs. 50,000/- which will result in matching of Bank balance with books of accounts.
Please advise me in this matter.
Regards,
Divyesh Jain
25 December 2021
Yes, you can reverse it in 20-21
25 December 2021
In relation to the above matter in the statutory audit report this amount was shown as Remuneration to director. Will that have any impact
25 December 2021
No impact.................
25 December 2021
Ok, Thanks a lot Sir for your guidance
26 December 2021
Also want to add on one more point. Can a Salary expense which was shown as Advance Salary given in F.Y. 2018-19 and was not booked as expense by the company in F.Y. 2018-19 can be claimed as expense in F.Y. 2020-21 to adjust profit. (TDS was deducted on this amount in F.Y. 2018-19)
26 December 2021
Yes it can be claimed.
26 December 2021
Thanks for your reply
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