14 December 2020
SIR We are GTA. We do all the expenses on behalf of sub-contractors and periodically, we set off them against their bills. How ever, the fastag expenses remains unadjusted at the end of year. So, Can we account the fastag charges as PREPAID EXPENSES IN ASSET SIDE - because the remaining expenses to be carried forwarded to the next year for the purpose of set off.
26 December 2020
Expenses for a particular FY needs to be debited to PL for the said period only. If these are just a kind of reimbursements you can debit the Sub-Contractors with these expenses so that these will be appearing in Accounts Receivable Balances at the end of the year.
CAclubindia
