Provision entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2013 dear sir

give me a suggestion that : i have to enter electric bill from 1.03.2013 to 2.04.2013 having Rs. 8500.00 due as on 8.04.2013 i have to pass two entries

iN F.Y 2012-2013
Electricity expense
Prepaid Electricity exp

Electricity expenses payable

In F.y 2013-2014
Electricity expenses A/c
to Prepaid Electricity expense ?

or In expenses taken as provision fully in f.y 2012-2013 as
Electricity expense A/c Rs.8500
Electricity expenses payable 8500.00

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

24 June 2013 First option is fine, if you are having accurate calculation of electricity charges for 2 days (1,2 April 2013) you can make as prepaid expenses or

you can make the provision for expenses up to 31st march and actual bill can be booked in fy-13-14 with reversing the provision entry

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2013 Thanks
Ramesh Krishnan

it think so ist is fine

Upgrade to CAclubindia Pro. Subscribe Now!