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Unclaimed liab

Kumar Gaurav (Going...to be C.A soon...) (1624 Points)

28 June 2010

See dis!

Exp. booked on 31.03.10====55000/-

Disbursed till 30.06.10====50000/-

Unclaimed exp till 30.06.10===5000/-

What would be the accounting entry for Rs. 5000/-

Traetment of unclaimed exp in b/s ?

By what time we shud wait for unclaimed exp?

Thanks in advance!

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Venkateswara Rao Sapare (Accountant) (1500 Points)
Replied 28 June 2010

"What would be the accounting entry for Rs. 5000/-

Treatment of unclaimed exp in b/s ?" is what Mr.Kumar Gaurav query.

If it is not claimed/paid by the year end 31.03.2011, it depends upon your reasonable assessment of the said provided-expenses, the provision may not be carried on for a long period.

"By what time we shud wait for unclaimed exp?", further query from him, to this solution will be that Accounting prudence never suggests to carry on for further financial years.