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p & L

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Querist : Anonymous (Querist)
06 January 2011 while preparing p and l statement what is the treatment of expenses of previous year paid current year and expenses of this year paid in next year and expenses of next year paid this year.


like wise income also

pl. let me know clearly withut any confusion as i am science student i am unable to understand this.

pl give me clear idea

06 January 2011 Make a provision in currect year for next year payment.

Eaxample
Current year
Rent paid Dr Indirect Exp
Rent payable CR Provisions

Next year
Rent payable Dr Provisions
Cash or Bank DR Current Asset

Current year
Interest accrued DR Current asset
Interest Received CR Indirect income

Next year
Cash or Bank Dr Current assests
Interest Accured Cr Current assests

Dont get confuse go through you can understand..............




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