Telephone expenses

Page no : 2

MD MUMTAZ (Student CA Final ) (28 Points)
Replied 14 December 2013

Anirudh's solution is correct

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Ramanuj (Accountant.) (834 Points)
Replied 14 December 2013

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

satish (betha) (21 Points)
Replied 14 December 2013

Anirudh is correct.

VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 14 December 2013

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

Pushkar (Student) (23 Points)
Replied 14 December 2013

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!

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Pushkar (Student) (23 Points)
Replied 14 December 2013

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?

Ashwini Kumar Rohilla (M.Com and CA-FINAL) (949 Points)
Replied 14 December 2013

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.

Rounak Lohia (Student CA IPC / IPCC) (37 Points)
Replied 14 December 2013

Dhanashekran is absolutely correct.. its an accounting system. Its also mentioned in audit system

DILIP YADAV (Student) (30 Points)
Replied 14 December 2013

Anirudh dear my frnd u r correct bt i also deserve sm credit.. Nd y u knw betr thn me.. :-P

DILIP YADAV (Student) (30 Points)
Replied 14 December 2013

Yes dhanasekaran ur previous answr describs al d situations..

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Rohit Aggarwal (ACA Bcom (H) MBA MCom) (470 Points)
Replied 15 December 2013

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...

HighFloat (I love to Read) (146 Points)
Replied 15 December 2013

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...