Journal entry

This query is : Resolved

Gopal G (Querist)
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26 June 2012 hi,

can i make provision entry for income ? that receipts related to mar 2012, but they raised bill april 12.

confirm me pls.

Gopal G

vishwash agarwal

vishwash agarwal (Expert)
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26 June 2012 No you can not make provision for receipts
as per
Accounting Standard (AS) 1
(issued 1979)
Disclosure of Accounting Policies
Prudence
In view of the uncertainty attached to future events, profits are not anticipated
but recognised only when realised though not necessarily in cash. Provision
is made for all known liabilities and losses even though the amount cannot be
determined with certainty and represents only a best estimate in the light of
available information.
so u cant make provision for thr receipt
provision only made for expenses

Thanx
Vishwash Agarwal
07666515328