WHAT IS THE ENTRY FOR BOOKING PROVISION...? IS IT
COMPULSARY FOR BOOKING PROVSION IN ACCOUNTING?
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Provision entry is not compulsory. When we have not
received routine expenses like telephone expenses, postage
etc. we have to make provision for the month of closing so
that we can have exact profit otherwise the profit may
high.
Entry for provision:
Expenses (P&L) Dr. ****
To provision a/c (BS) ****
| Is This Answer Correct ? | 14 Yes | 0 No |
It is compulsory for booking for provision because without
provision you can not make a balence sheet with 100 %
Accurate. suppose you are closing financial year on 31
march and up to 31 March you can not book some exp like
income tax(based on calculation of net profit) , tel bill
(March) , water bill(March).
Income tax A/c ........Dr.
water Exp A/c..........Dr
To Prov for Income tax.
To Prov for water Exp.
hence it is compulsory as per company and income tax act.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / hemanta behera
Provision is compulsory. provision for dept compulsory
Ex
Badept 5000
provision for dept 12000
The entry is
Badept 5000 Dr*
provision for badept 12000 Dr*
To debtor
| Is This Answer Correct ? | 2 Yes | 2 No |
Answer / manjunath.r
provision :- It is compulsory for booking for without you
can make balance sheet
any expense you not recorded in entery book that time will
be accpeted
| Is This Answer Correct ? | 1 Yes | 1 No |
Here is a question i was asked below is the scenario need to enter journal entrries for both accounting system Cash and Accrual :- 1) Landlord A/c 2) Tenant A/c 3) Bills Receivable A/c 4) Cash A/c 5) Bank A/c Situation:- 1) Bill is created. 2) Bill is sen to the tenant, journal entry =? 3) Cash is received from the tenant, journal entry=? 5) If cheque is received from the tenant, journal entry=? 6) Receipt is created. 5) Receipt is sent to the tenat, journal entry=? Its urgent, please help.
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