All Respected members,
Please educate me on following:
can we reduce salary and travelling expense of previous fiscal year which was not only paid but also booked in previous fiscal year?
Suppose that a company hired an employee in fiscal year 2020. He resigned and leave the company without completion notice period. Due to this behavior company decided that they will not pay his salary and some other changes like traveling charges. Therefore, these expense was not booked by accountant for said fiscal year. In next fiscal year same employee rejoined the company after settlement of management. Company decided to pay him above mentioned dues in good gesture. In this this case please guide on following:
1-In Which account these expenses should be recorded ?
2-Can these previous fiscal year expenses consider as current fiscal year expenses to less from current fiscal year income because if we see money is spending in existing fiscal year ?
Thanks in advance for your precious time and efforts to reply this query.
The new employee must not get this money.
However, the expenses must be booked not under the original charges.
CAclubindia
