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Assignment
Company at the month end estimated that for following Expenses,Bills were not received.
Make Provision for expense for same
|
Expense Name |
Party Name |
Amount |
|
Internet Charges |
Reliance |
2000 |
|
Maintenance Charges |
Apsara Building Association |
1500 |
|
Electricity Expense |
BSES |
9000 |
|
Water Expenses |
Delhi Jal Board |
500 |
|
Total |
|
13000 |
For making provision for the expenses:
Internet charges A/c Dr 2000
Maintenance charges A/c Dr 1500
Electricity expenses A/c Dr 9000
Water expenses A/c Dr 500
To Provision for expenses A/c 13000
Next month, Bills of following amount were received regarding these expenses
|
Expense Name |
Party Name |
Amount |
|
Internet Charges |
Reliance |
2700 |
|
Maintenance Charges |
Apsara Building Association |
1400 |
|
Electricity Expense |
BSES |
9300 |
|
Water Expenses |
Delhi Jal Board |
200 |
|
Total |
|
13600 |
Pass Entry for Next month also
View Answer
At the time actual bills were received:
Provision for expenses A/c Dr 2000
Internet charges A/c Dr 700
To Reliance A/c 2700
Provision for expenses A/c Dr 1400
To Apsara building association A/c 1400
Provision for expenses A/c Dr 9000
Electricity expenses A/c Dr 300
To BSES A/c 9300
Provision for expenses A/c Dr 200
To Delhi jal board A/c 200
For writing off excess provision:
Provision for expenses Dr 400
To Excess provision written off A/c 400
(13600-2000-1400-9000-200)
At the time of payment :
Reliance A/c 2700
Apsara building association A/c 1400
BSES A/c 9300
Delhi jal board A/c 200
To Bank A/c 13600
