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Reversal of cost to Balance Sheet

26 December 2023

Pre deposit amount for appeal to Customs was wrongly charged to P & L account. As we win appeal, will get back thus amount. Can we reverse ii to Balance sheet as asses- recoverable from customs. Please advise

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21 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 26 December 2023

Yes... If You are wrongly account then You can reverse such amount...

(But, No clear view of your query when it's happened)

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Jayanta Bandyopadhyay (310 Points)
Replied 26 December 2023

We had deposited in 2018 to press for appeal under Customs Act and got favourable judgement in 2023. By mistake, we had taken it to cost . Customs Dept asks auditor certificate about BALANCE SHEET SHOWING AMT RECOVERABLE FROM CUSTOMS

We get stuck . How to meet this criteria?

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 26 December 2023

Now only You asked clearly with details...
The amount not shown in balance sheet around five years.
It's can't be simple...

Better to discuss with Your Auditor...

CA Raj Doshi (Practising CA) (8924 Points)
Replied 27 December 2023

Can be done sir. not an issue. auditor guidance required.

Rgds
CA. Raj Doshi
R C D & Co.
Chartered Accountants
Kandivali West,Mumbai

1 Like

Jayanta Bandyopadhyay (310 Points)
Replied 27 December 2023

Sir

Would you please guide about applicable AS and CA Institute guideline or case laws. Auditors are reluctant. We need to take them on board. Else to forfeit Rs.6 Lakhs for a mistake

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CA Raj Doshi (Practising CA) (8924 Points)
Replied 27 December 2023

Pass entry for

DR provision for customs refund receivable ( current assets )

CR custom duty refund ( other income )

And take CA certificate

Jayanta Bandyopadhyay (310 Points)
Replied 08 January 2024

DR provision for customs refund receivable ( current assets ) CR custom duty refund ( other income )

Jayanta Bandyopadhyay (310 Points)
Replied 08 January 2024

Sir

Can we pass 2 entries

1. General Reserve Dr

Pre deposit for filing appeal under Customs act [prior period income]

2. Refund Receivables from customs dept Dr

Pre deposit for filing appeal under Customs act [prior period income]

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 08 January 2024

Why two entries...??

Please reply for this one...

Where is actual located in this amount at the time of booking...??

Jayanta Bandyopadhyay (310 Points)
Replied 08 January 2024

ADDENDUM

Sir

Can we pass 2 entries

1. Provision for predeposit receivable Dr

Pre deposit for filing appeal under Customs act [prior period income]

2. Refund Receivables from customs dept Dr

General Reserve

But getting no clarity. Kindly guide

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 08 January 2024

Bro,

I will definitely clear Your query.

But,

I want clarity about the entry at the time of appeal amount booked entry.

It mean I want wrongly charged entry details...

Jayanta Bandyopadhyay (310 Points)
Replied 08 January 2024

Sir

Wrongly charged to P & L from bank book in 2020.

Regularisation in 2024

Pl guide vis a vis AS. PRIOR PERIOD ADJ AND TAX AUDIT

Jayanta Bandyopadhyay (310 Points)
Replied 08 January 2024

Directly charged to P & L from Bank book

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 08 January 2024

Originally posted by : Jayanta Bandyopadhyay
	Sir Wrongly charged to P & L from bank book in 2020. Regularisation in 2024 Pl guide vis a vis AS. PRIOR PERIOD ADJ AND TAX AUDIT