17 March 2016
While i was audit of my client i came to a query that is client has paid in nov 2015 500000 rs. rent for 110th AGM FY- 15-16 held on 1 july 2016. Now query is that rs. 500000 paid toward rent to booked in p&l account in 15-16 or 16-17. Plz support with relevant accounting principle
If the expense has accrued and become payable on 31.3.2016 in respect of 2015-2016, you can show it as payable on 31.3.2016 however, the expense becomes payable only when the agm 2016 is held. hence, you have to show it during fin.year 2016-2017
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