FBT

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CPA Parveen Sharma (Querist)
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06 August 2009 Does it is necessary to provide FBT provision before ending of quarter..if yes what would be provision and payment entry.

FBT Provision should be provided on which date ?

Secondly if i deposited exact FBT after every quarter without making any provision..is that wrong ???

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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06 August 2009 Provision is expected liability to come in next Qtr so you decide wht you may have to pay for FBT.

Entry is

P&L A/c Dr
Prov for FBT Cr.

CPA Parveen Sharma

CPA Parveen Sharma (Querist)
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06 August 2009 hi Prakash, you mean provision for FBT for July to September Qtr..should be done in July..correct ???

Please see the below entry..is that correct ?

1. FBT Dr (Under Expenses group)
To FBT provision Cr (under loan& advanc)
(Making provision for July to Sep)

2.FBT provision Dr
To Bank
(Depositing FBT)

3.Profit and Loss
To FBT
(Trfd closing balance to P&loss)

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CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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06 August 2009 Yes you are very right in passing above entries :)

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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06 August 2009 Its correct to make provision for FBT for July to September Qtr..in July..:) cheers the helping hand :)

CPA Parveen Sharma

CPA Parveen Sharma (Querist)
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06 August 2009 Thanks prakash. one more question...i did not made any FBT provision in FY 2008-2009. during the audit objection was raised by the auditiors.

Would it make any difference if i put FBT provision entry now in previous date, as i am about to close my books for the FY 2008-2009

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FBT

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