provision is provided on balance sheet date refer to unknown liability , which happens in future,
for outstanding expenses, we know the actual liability as per bills w.r.t telephone, power, rent ...... on balance sheet date,
but if we see tds to be duducted on interest ,due on 31/3 (last day of py) , if such tds is not deducted on same day , then what is the accounting treatment
here we know the actual tds to be deducted on 31/3, so for known liablity we have to treat it as outstanding expense instead of making provision on 31/3 , is it correct ?
CAclubindia
