BMC Associates says Replied on 20th September,2026 02:06 PM

For CSR expenditure, the accounting treatment depends on whether the company has already incurred the CSR obligation or has only identified the amount required to be spent. If CSR expenditure is recognised as an expense, a typical entry would be: CSR Expenditure A/c Dr.   To CSR Liability / Payable A/c When the amount is actually paid: CSR Liability / Payable A/c Dr.   To Bank A/c If the company has unspent CSR amount, the treatment depends on whether it relates to an ongoing project or otherwise, because the Companies Act prescribes different requirements for transferring unspent amounts. Importantly, CSR expenditure is not normally adjusted directly against the surplus/profit in the P&L. It is recognised as an expense in the Statement of Profit and Loss in accordance with the applicable accounting framework, with the corresponding liability recognised when the obligation exists. For such CSR accounting and compliance matters, businesses may consult chartered accountant firms in gurgaon, a chartered accountant gurgaon, a ca firm in gurgaon, or a ca in gurgaon.