Previous year expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2012 Dear Sir,

if we receive telephone bill in the month of May,2012 for the period 11.03.2012 to 10.04.2012. When we will book expenses in our accounts books?

1. 31st March,2012

2. May,2012

What accounting entry will be passed ?

Plz help me urgently.

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
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07 May 2012 The expenses will be booked as and when the bill for the same is received by the organisation.
The accounting entry will be

Expense A/c Dr
To Expense Payable A/c Or
To Party A/c( in whose favour amount is to be credited)

CA. Richi Saxena