Provision for expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2013 Sir,
Suppose on May' 2013 I receive a bill from the party dated: 05.03.2013 for an expense related to accomodation & fooding incurred on April'2012 whether I need to make a provision for the same in my Accounts on 31st march'13 or just treat it as a normal expenditure in F.Y: 2013-14. Also guide me about provisioning of expenses.

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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01 June 2013 You need to make provision for expenses on March 31, 2013.

Provision for expenses means expenses which has been incurred but liability is not certain as bill is not raised by the service provider/supplier.