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Expenses payable

Pardeep (Accountant) (45 Points)

05 August 2021

Can we book expenses payable or prepaid exp. In school/ trust accounting?

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7 Replies

ASIF ALI MEMON (8 Points)
Replied 05 August 2021

YES IT PERTAINS IN MATCHING PRINCIPAL OF FINANCIAL ACCOUNTING

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 05 August 2021

Follow mercantile accounting system

Nidhi (Chief Accountant) (3150 Points)
Replied 05 August 2021

Yes, you can if following mercantile system

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5249 Points)
Replied 06 August 2021

Method of accounting for an education trust is cash system. You should accounted the expenses and Income when they are paid/ received so there are no journal entries. Receipt & payment account and Income & expenditure account are the final accounts (instead of Trading & Profit Loss account). you should maintain : Cash book Ledger Fees register Salary Register other register as per requirement.

Pardeep (Accountant) (45 Points)
Replied 06 August 2021

Dear Rama Sir

but how to treat AMC which is from july'21 to June'22 because from july to march is current year exp. & from april to june'22 is for next year. same as telephone exp. which is payable in march but we paid it on april or may?