Unbilled Expenses/Matching Concept

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Ankit (Querist)
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08 July 2010 I have a pvt ltd company into structural and engineering consultancy. I pay salaries to various engineers and designers which is very high. I have a query: Suppose I pay Rs 500000 as Salary to my engineers on monthly basis for the month of March which i'll debit to P&L a/c but the corresponding bill for the project on which they were working was booked in April. So what is the treatment for the salary for which no corresponding revenue is booked as per matching concept?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 July 2010 You need to show as work in progress ( which is unbilled) for matching your Income and expenses

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Ankit

Ankit (Querist)
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08 July 2010 But on what basis it can be bifurcated and booked .

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CA SMR

CA SMR (Expert)
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08 July 2010 As per your query though RS 500000/- was paid as salary for the month of March,the project on which the engineer worked was billed only in April.Hence Rs 500000/- to be shown as work in progress in March and can be charged off in April.