Reversal of provision

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Sriram (Querist)
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12 November 2011 how to reverse a provision which is in excess of actual required for ex ; car charges Rs 50000 provided but actually ascertained as 45000 only how to reverse the provision

Rajnish Singh

Rajnish Singh (Expert)
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12 November 2011 DEAR RAM,

IF YOU TAKE THIS PROVISION IN THE LAST F.Y. THAN YOU SHOULD PASS THE FOLLOWING ENTRY.

@ PROVISION FOR CAR MAINT EXP DR.

TO CONCERNED PARTY LEDGER A\C 45000
TO CAPITAL A\C / PROFIT & LOSS A\C 5000
OR
IF YOU TAKE THIS IN THIS YEAR THAN
CREDIT PARTICULAR EXP A\C WITH 5000

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