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In question 2.4 , how is this a prior period item,the claim is received this year.

pradyumna hariramani

CA Inter

★ 290

23-May-22 16:55

547

Answers (6)

Best Answer

Thread Starter

pradyumna hariramani

But, why even record in previous year when it is received in current year

We have to record Accrual basis. It ovcured in previous year only that y we recorded

Likhitha Sivani

CA Final

★ 14K+

23-May-22 17:12

Haa yes claim is related to 2006-07 but they didn't recorded in books in that year. Instead they recorded in next year. Then it will be treated as prior period item only na

Likhitha Sivani

CA Final

★ 14K+

23-May-22 16:57

It's an error of Ommision.. They did not take it in the accounts in the respective year but took in current year hence.. It's a prior period item

Manoj Raj

CA Final

★ 12K+

23-May-22 17:08

Likhitha Sivani

Haa yes claim is related to 2006-07 but they didn't recorded in books in that year. Instead they recorded in next year. Then it will be treated as prior period item only na

Yes

Priyanka R

CA Final

★ 20K+

23-May-22 17:09

Likhitha Sivani

Haa yes claim is related to 2006-07 but they didn't recorded in books in that year. Instead they recorded in next year. Then it will be treated as prior period item only na

But, why even record in previous year when it is received in current year

Thread Starter

pradyumna hariramani

CA Inter

★ 290

23-May-22 17:11

Likhitha Sivani

We have to record Accrual basis. It ovcured in previous year only that y we recorded

Thanks

Thread Starter

pradyumna hariramani

CA Inter

★ 290

23-May-22 17:38

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