23 January 2010
CASE - THE COMPANY MADE RS 100000 PROVISION FOR THE PAYMENT TOWARDS LTA IN THE YEAR 2008-09. BUT IN THE CURRENT YEAR 2009-10 THE CO. BOOKED RS 150000 AS LTA EXPENSES RELATING TO 2008-09.
HOW IT WILL BE SHOWN UNDER BOOKS AND FINANCIAL STATEMENTS. IS THE EXCESS PAYMENT OVER PROVISION WILL BE SHOWN UNDER PRIOR PERIOD EXPENSES IN THE P&L A/C.
AS AN AUDITORS SHOULD I QUALIFY THE REPORT.
PLEASE SUGGEST BOTH ACCOUNTS AND AUDIT PROSPECT OF THE CASE.
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