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What is the accounting entry for recording the missed out expense of previous year without affecting the current year net profit?

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Question added by Panuganty AnilKumar , Chief Financial Officer
Date Posted: 2015/04/14
RAJESH DESHKULKARNI GOPAL
by RAJESH DESHKULKARNI GOPAL , Group Accounts & Tax Manager , Confidential Group

As per my view

Prior period expense adjustment in Financial statement (P&L) is required to record prior period expenses.

However, Profit/ Loss will be affect, without this how our accounting is possible in mercantile?

either of Capital/ Revenue is affected. Mercantile there's no other choice.

 

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