ekuemoah
08-31-2012, 05:38 PM
I closed my books for the month. I noticed a month later that I had expenses for the month I closed that were not recorded in the month in which they were incurred. How do I journalize these expenses...
Do I record it in the current month(the month it was discovered)?If I do this, the expenses for the current month will be overstated and the expenses for the month in which it was incurred will be understated. This will lead to an error in the income for the period and inaccurate taxes.
Should I keep the amounts in a separate account called unrecorded expenses and then at the end of the quarter or year, include it as other expenses and use it to recalculate the net income for the quarter?
What do I do if I already sent in my income taxes for the quarter and this newly discovered amount makes the taxes inaccurate?
Do I record it in the current month(the month it was discovered)?If I do this, the expenses for the current month will be overstated and the expenses for the month in which it was incurred will be understated. This will lead to an error in the income for the period and inaccurate taxes.
Should I keep the amounts in a separate account called unrecorded expenses and then at the end of the quarter or year, include it as other expenses and use it to recalculate the net income for the quarter?
What do I do if I already sent in my income taxes for the quarter and this newly discovered amount makes the taxes inaccurate?