User:Shaikh Munir Hossain

Advance is given to a sister office for making payments in a financial year 2005-2006. But the office could not produce adjustment vouchers within the financial year 2005-2006. And for this reason the accounts personnel of parent office didn't accounted for the expenditures in that financial year and closed the year. They accounted for the expenditure in the next financial year 2006-2007 when the adjustment vouchers was received.

Question is : what is the accounting treatment of such transactions. Does GAAP permit to enter the transaction in historical financial year 2005-2006.