Please Help: expenses
Posted Date : 17-Sep-2011 , 11:59:24 am | Posted By: Ankurgoyal
Category :
Accounts | Answers :
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what is the definition of provisional expenses?
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Answers:
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 Answer by: Ashish Karundia |
| Dear Ankur,
There is no definition of provisional expense. In Finance Sector, provisional expense is used to denote expense which have been accrued/incurred but for which you havent received the bill. Since you havent received the bill, you are not aware of the actual amount but as the expense have been incurred you book the same in the name of provision for expense (provisional expense) in order to comply with Accounting Standard -1 - 'Disclosure of Accounting Policies'.
Hope this clears the point.
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