Sales and expenses

One should book expenses & incomes when the job or work happens. All the payable or receivables will remain balanced as an outstanding for the financial year if not done on that particular year .

 DEAR,

SINCE THE REPAIR WORK WAS DONE IN THE FINANCIAL YEAR  2022-23,

 THE INCURRED EXPENDITURE SHALL BE  ACCOUNTED FOR IN THE BOOKS  ON  ACCRUAL BASIS BY PASSING A JOURNAL ENTRY 

                               FY 2022-23

REPAIR EXPENSES  A/C Dr     Rs.xxxxxxxxx

TO  VENDOR   A/C           Cr:    Rs.xxxxxxxxx

AND ALSO  IN THE SAME WAY  THE CORRESPONDING REVENUE SHOULD ALSO BE RECOGNISED   

IN THE SAME YEAR ON THE BASIS OF MATCHING CONCEPT .

CUSTOMER/DEBTOR A/C                                 Dr   Rs.xxxxxxxx

REVENUE/SALE OF SERVICE  A/C                  Cr: Rs.xxxxxxxxxx

ABOVE PROCEDURE SHALL BE FOLLOWED IRRESPECTIVE OF PAYMENT RECEIPT AND INCOME TAX SHALL BE PAID FOR FY 2022-23 ONLY..