Reversing provision
This query is : Resolved
30 August 2013
Dear All,
Please let me know, what will be the entry in the month of August during monthly closing, if we have to reverse provision taken for bonus at the time of year ending i.e. 31st March. Bonus has been paid in the beginning of August month itself.
Please let me know, what will be the entry in the month of August during monthly closing, if we have to reverse provision taken for bonus at the time of year ending i.e. 31st March. Bonus has been paid in the beginning of August month itself.
30 August 2013
Provision should be write off in books.
Entry will be.
Provision for bonus A/c Debit
To, Mode of payment(Cash or Bank etc.)
(Being amount of bonus paid)
By this your provision account will become nil & u booked expense also.
Entry will be.
Provision for bonus A/c Debit
To, Mode of payment(Cash or Bank etc.)
(Being amount of bonus paid)
By this your provision account will become nil & u booked expense also.
30 August 2013
Dear Sir,
We have to reverse the provision after making payment.
We have to reverse the provision after making payment.
30 August 2013
Mr. Ravi What entry u have passed ?
When making provision ?
When making provision ?
30 August 2013
At the time of Provision:
Bonus Dr.
Provision for bonus cr.
at the time of paying:
Provision for bonus dr.
to Bank
we have taken excess provision at the time of closing.....now tell me entry for reversing that excess amount.
Bonus Dr.
Provision for bonus cr.
at the time of paying:
Provision for bonus dr.
to Bank
we have taken excess provision at the time of closing.....now tell me entry for reversing that excess amount.
30 August 2013
Oh ok... that will be your income because you have taken same as expense at the time of making provision.
So Entry will be.
Provision for Bonus Dr. with excess amount.
To Excess provision for bonus(New Account under Income head).
So effect will become nil.
No More Expense charged to P & L A/c.
So Entry will be.
Provision for Bonus Dr. with excess amount.
To Excess provision for bonus(New Account under Income head).
So effect will become nil.
No More Expense charged to P & L A/c.
30 August 2013
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