Suppose professional services bill of CA of 2014-15 of Rs 10000 paid in 2015-16
Bill was received late and hence not booked in 2014-15
Now in 2015-16,we will pass entry
Prior Period Expenses Dr 10000
To CA 10000
CA Dr 10000
To Bank 10000
(Prior period expenses come in tally under Indirect expenses,in narration you can mention that it is professional expenses of 2014-15)
Written on July 28, 2016, 12:05 a.m.