Accountancy Forum

Assalam-o-Alkum

1)i want to clearify if any Power (Eelctricity & Gas ) bills received in existing month & date of issued which is mentioned in bill also belongs to existing(i.e Dec ) month but bill is paid next of month (i.eJan)in (due date)in which month we will claim input either dec or jan

2)if this input belong to jan it means we claimed input with payment date

Regards
Sohail Ahmed

Walekum salaam

My Dear

I would like to advise you to claim or obtaining adjustment specially for those bill i.e
(electricity and gas) as per issuance date due to two reasons

1) In order to avoided the timing differences between financial
reporting and sales tax accounting.

2) In order to fulfilling the requirement of MATCHING CONCEPT.

Moreover, let suppose your company received a bill (issuance date is 05 Dec, 2011) pertains to electricity consumed in the month of November, 2011 irrespective of the fact that the payment should be made in current month or following months.

This bill should be claim with respect to following

• At the time of receipt, according to issuance date i.e
05/12/2011 in the tax period of December 2011.

• At the time of recoding the electricity expenses pertains to
this bill in your financial reporting system.

Hope your required information has been delivered.

Regards,
Umar.[)]