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Telephone expenses
Anirudh's solution is correct
Dear All
I Think if did not find that how many will be come telephone expenses, you take amount estimates basis as per past months. Dr telephone expeses to Created Liability
1. Dr Telephone Exp.
To Outstading Expenses.
2. Dr Outstanding Exp.
To Cash /bank a/c
If you have find different then Debit & credit expenses & income are booked.
Thanks
Ramanuj
Anirudh is correct.
Anirudh is correct.In balance sheet payable will be shown for first year.On payment it should be written off by cash or bank next year.Thanks
The amount of liability can be kept 3000.. in this case and if the actual bill is less we can transfer it to genral reserve... but my doubt is what if the amount is more than 3000..? Will it effect the profits of cc. Year!
We can pass the amount 3000.. ( in this example) and if the bill is less add the balance to genral reserve but my doubt is what if the actual amount exceeds 3000
.. will it effect the profits of next year?
Financial Statements are attest by CA after some time from Balance Sheet Date and during that time if bill is received than that entry should be adjusted in Books of Accounts.
Dhanashekran is absolutely correct.. its an accounting system. Its also mentioned in audit system
Anirudh dear my frnd u r correct bt i also deserve sm credit.. Nd y u knw betr thn me.. :-P
Yes dhanasekaran ur previous answr describs al d situations..
We will take the amount on a propotionate basis e.g. If the average monthly rent is Rs 3000 then for passing the expense payable entry for let say 20 days we can tak the amount to be 2000...
I think you recognize the expense 1 month later everytime ... In a year this will create an even flow
for eg.
Dec exp in jan
jan in feb
feb in march etc
and if u do recognize it shall be recognized at the end of d month
Entries
telephone exp dr
to telephone exp payable
p/l dr.
to tel exp
tel exp payable shall come in b/s
for the amount
take years avg. Or 3 months avg. Or if same as prvs year take amount of that mnth in prvs year
hope it helps...
Sorry, all the spacing nd enter got mixed.. Using d app
dear shivani,
pass the provisional journal entry u don't know how much bill will come
Dr Telephone bill a/c - Debit side of the Profit & loss a/c
Cr Telephone bill payable a/c - Liability side of the Balance sheet
when bill is paid
Dr Telephone Bill payable a/c
Cr Cash/Chq/DD
S.. How ll u make entry without knowing amt???
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