Top IND AS Journal Entries

 Top IND AS Journal Entries 

✅ 1️⃣ IND AS 115 – Revenue (Contract Asset / Liability)

Revenue earned > billed

Contract Asset Dr
To Revenue

Billing > revenue earned

Revenue Dr
To Contract Liability

✅ 2️⃣ IND AS 116 – Leases (Lessee Entries)

On commencement:

ROU Asset Dr
To Lease Liability

Monthly payment:

Finance Cost Dr
Lease Liability Dr
To Bank

Depreciation:

Depreciation Dr
To ROU Asset

✅ 3️⃣ IND AS 16 – PPE (Component Accounting)

PPE – New Component Dr
Accumulated Depreciation Dr
To PPE – Old Component

✅ 4️⃣ IND AS 38 – Intangibles (R&D)

Research:

Research Expense Dr
To Bank/Payables

Development (Capitalised):

Intangible Asset Dr
To Bank/Payables

✅ 5️⃣ IND AS 36 – Impairment

Impairment Loss Dr
To Asset

✅ 6️⃣ IND AS 37 – Provision for Warranty

Create provision:

Warranty Expense Dr
To Provision

Utilise provision:

Provision Dr
To Bank/Inventory

✅ 7️⃣ IND AS 109 – Financial Instruments (FVTPL)

Financial Asset Dr
To P&L (Gain)

or

P&L (Loss) Dr
To Financial Asset

✅ 8️⃣ IND AS 21 – Forex Gain/Loss

Forex Loss Dr
To Foreign Payable

Foreign Payable Dr
To Forex Gain

✅ 9️⃣ IND AS 12 – Deferred Tax (DTA/DTL)

Income Tax Exp Dr
To DTL

DTA Dr
To Income Tax Exp

✅ 🔟 IND AS 102 – ESOP Accounting

Employee Benefit Exp Dr
To SBP Reserve

Bank Dr
SBP Reserve Dr
To Share Capital
To Securities Premium

✅ 1️⃣1️⃣ IND AS 103 – Business Combination (Goodwill)

Net Assets Dr
Goodwill Dr
To P.Consideration

✅ 1️⃣2️⃣ IND AS 2 – Inventory (NRV Adj)

Inventory Loss Dr
To Inventory

✅ 1️⃣3️⃣ IND AS 19 – Employee Benefits (Gratuity Provision)

Employee Benefit Exp Dr
To Gratuity Provision

✅ 1️⃣4️⃣ IND AS 40 – Investment Property (Fair Value Model)

Fair value gain:

Investment Property Dr
To P&L (FV Gain)

✅ 1️⃣5️⃣ IND AS 105 – Non-Current Assets Held for Sale

Asset Held for Sale Dr
To Asset

✅ 1️⃣6️⃣ IND AS 23 – Borrowing Costs (Capitalisation)

Capitalisation of eligible borrowing cost:

PPE / Qualifying Asset Dr
To Borrowing Cost

If borrowing cost is expensed:

Finance Cost Dr
To Bank

✅ 1️⃣8️⃣ IND AS 41 – Agriculture (Fair Value Changes)

Increase in fair value of biological assets:

Biological Asset Dr
To P&L (FV Gain)

Decrease:

P&L (FV Loss) Dr
To Biological Asset

✅ 1️⃣9️⃣ IND AS 8 – Changes in Accounting Estimates

If expense increases due to revised estimate:

Expense Dr
To Provision / Liability

✅ 2️⃣0️⃣ IND AS 20 – Government Grants (Deferred Grant Income)

Grant received:

Bank Dr
To Deferred Govt Grant

Recognition in P&L:

Deferred Govt Grant Dr
To Other Income

For more kindly follow CA Teja Poojari

hashtag#charteredaccountants hashtag#cma hashtag#finance hashtag#indas hashtag#accounting hashtag#Entries hashtag#icai hashtag#icmai hashtag#interview hashtag#revenue hashtag#asset

Feed post number 2