I have received a sum of Rs.500 worth Bill from Vendor,
which is relevent to 2004-05. But Outstanding Expenses not
book during that Year? What is the Accounting Policies to
book this expenses?
Answer / sreenatha reddy a
if any Expenditure is not accounted in any Previous year it should be booked in current year as Prior Period Expenditure under Indirect expenses. and the Same is Disallowed in the Computation of Income during the Current Previous Year. But In Case of Prior Period Income It Is Different and It Should Not Be Disallowed.
Is This Answer Correct ? | 4 Yes | 0 No |
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Expand---------PRSM
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my friend paid Rs.6.00 Lakhs go a government office through a demand draft for a particualr permission/license. But actual fee payable by is Rs.2.00 Lakhs. Peviously submitted demand draft for Rs.6.00 Lakhs has not been adjusted into governmet account. he went to govt.office and requested to return the 6.00 Lakhs demand draft and assured that he wll pay th actual fee of 2.00 Lakhs. Can he get back the previously submitted Rs.6.00 Lakhs demand draft duly paying the actual fee of 2.00 Lakhs
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