Prior period items

This query is : Resolved

CA Mrudula Purnanand Desai (Querist)
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24 January 2013 Can I record expenditure of traveling exp., transport exp. etc. incurred during March 2012 in June 2012 if I have paid for those exp. in June 2012?

CA Priyank Singhi

CA Priyank Singhi (Expert)
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24 January 2013 Yes you can. In March you can enter the entry as:
Exp a/c Dr.
To Outstanding Liability

In June:
Outstanding Liab Dr
To Cash / bank

CA Mrudula Purnanand Desai

CA Mrudula Purnanand Desai (Querist)
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24 January 2013 But the problem is I have not provided for those exp.in March and in June I found the bill and paid the same. Then what will be the remedy?

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CA Priyank Singhi

CA Priyank Singhi (Expert)
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25 January 2013 If the amount is not substantial let it go because these things are a little complicated.

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CA Mrudula Purnanand Desai

CA Mrudula Purnanand Desai (Querist)
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25 January 2013 Ok Sir. Thank you so much.