Plz guide me how provision for the month of March will entred in accounts books regarding electricity exp & telephone exp.. when actual bill are not recvd?
2 Replies
vikas
(student )
(139 Points)
Replied 13 July 2013
dear sir ,
If u can not received the actual invoice of telephone /electricity expenses than u make a provision on average basis (on the basis of last some months).
journal entry :-
telephone /electricity expenses Dr .........
To provision for telephone/electricity expenses ...............
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 13 July 2013
Provision should be made on an average basis consiering the payment made during the year. When the bill is received in the subsequent year then th excess provision if any shud be sritten back to P&L and if short provision was made P&L shud be debited.
Recent Topics
- CLOSURE of LLP VIA FORM 24
- RCM on repair
- Understand Operating Profit/Income - How to Calcul
- Error in E-verification for Form 35(Appeal)
- ITC on plant and equipment
- Https://www.facebook.com/luxeleurantiagingserum/
- TDS for Senior Citizen
- Want to pay tax on forward charge and pay tax
- How Often Should You Service Your Air Conditioner
- TRANSFER PROPERTIES
Related Threads
CAclubindia
