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NORMAL ACCOUNTING

CA Amit Kumar Shrivastava (CHARTERED ACCOUNTANT) (104 Points)

06 July 2010

TELEPHONE BILL PERIOD OF 12.03.2010 TO 11.04.2010 --> AT WHAT DATE ENTRY SHALL BE MADE & IN WHICH YR THIS SHALL BE ALLOWED? I DON'T WANT TO GIVE OPPORTUNITY TO STAT AUDITOR TO FIND MISTAKE . SO PLZ GUIDE ME. IT'S URGENT.

THNX & REGARDS.

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3 Replies

CA Amit Kumar Shrivastava (CHARTERED ACCOUNTANT) (104 Points)
Replied 08 July 2010

Dear Friends,

My Q. is daily use basic question. I didn't think, no one can answer it . it's so sad for caclubindia's member.

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Kapil (ds) (92 Points)
Replied 10 July 2010

Hi Amit....

Expenditure for telephone bill in respect of period march-april '10 will be made of the basis of receipt of bill i.e. thr is no relevance as per the I. T. act of the above case just because some part of the services rendered relate to a different A. Y. therefore you should account for the said expenditure in the year of its receipt of its bill i.e. in previous year 2010-11 and deduction of the same will be allowed in A. Y. 2011-12.

hope that above explanation helps you.

Sagar Zankhariya (Audit Assist.) (278 Points)
Replied 11 July 2010

Hey Amit Expenditure for Telephone Bill Period of 12.03.2010 to 11.04.2010. U can do it as provision of telephone bill i.e. 20 days like example Telephone Bill Period of 12.03.2010 to 11.04.2010 amounting Rs. 1200 than u can Rs. 800(20 Days) Provision of Telephone Bill in the F.Y. 2009-10 and after that u adjust in F.Y. 2010-11 against total bill.