When to book expenses

Page no : 2

Anoop V A (CA FInal) (26 Points)
Replied 02 July 2012

Our client applied for waiver of stamp duty for raising of authorised capital in karnataka govt in 2009-10. The govt gave only 50% waiver and the order issued in 2010-11. Client didnt provide balance 50% stamp duty expenses in accounts because BIFR instructed the client to apply again for 100% waiver. In current year 2011-12 the govt ordred only 50% waiver is allowed. So the balance 50% of stamp duty accounted as current year expenses. Is it a PRIOR PERIOD EXPENSES?

Pls reply soon.Its very urgent

Anoop

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Gourav Dutta (CA Final) (39 Points)
Replied 02 July 2012

If Book Expenses Of March

Expenses A/c.........................Dr

to Creditors For Expenses

These Entry For all Salary, Telephone,Electricity,tds

Next Month When Will be paid

Then,

Creditors for Expenses A/c............Dr

to bank/ cash A/c

Gourav Dutta (CA Final) (39 Points)
Replied 02 July 2012

Accural concept only Applicable for March Months

You Can Journal Entry Made for All Month Paid later Month but You have to Book Expense Of March in Same month