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provisional entry

05 November 2018

sir plz tell me the provisional entry of electric bill if i receive electric bill on 15 th april included gst... then what entry i should pass on 31st march and 15 th april????

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11 Replies

Mayur Patil (Article) (1276 Points)
Replied 05 November 2018

31-3
Electricity exp A/c dr.
To provision for electricity exp

When you make payment of bill
Provision for electricity exp dr.
To bank/cash

As per my knowledge distribution of electricity service is exempted in gst

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Rajkiran Ghosh (480 Points)
Replied 06 November 2018

sir plz tell me if my bsnl bill is from 15 th march to 15 th april then can i take bill amount 50% last f.y. and 50% this f.y.????

Mayur Patil (Article) (1276 Points)
Replied 06 November 2018

Yes we can Show proportionately.

Rajkiran Ghosh (480 Points)
Replied 06 November 2018

and sir one more thing the provisional entry should be made only on 31st march for accrual basis???

Mayur Patil (Article) (1276 Points)
Replied 06 November 2018

Yes provisional entry required when accounting based on accrual base.
In cash base accounting expenses recorded when we make payment.

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Rajkiran Ghosh (480 Points)
Replied 07 November 2018

sir plz tell me if i get gst bill of bsnl telephone on 7 th of every month then can i take entry in accounts on 7 th of every month and only in march 31st i will take entry???

Mayur Patil (Article) (1276 Points)
Replied 07 November 2018

As per the matching concept and mercentile system the expense you incurred in any financial year those expenses you've to show in same financial year.

So, the bill of march you'll receive in april and if you pass entry in April the financial will change so that's why in the month of march provision required

In rest months question will not arise regarding change of financial year.
So you can pass J.V. 7th of every month but in March provision required

Besure you're following accrual / mercentile base accounting. This concept not applicable for cash base accounting