If I have understood your query correctly, then instead of passing an Entry of
Party A/c ... Dr
To, Income Account....
U have passed,
Party A/c ..... Dr
To Expense A/c.
which in turn may reduced your Expense, and also doubled your Profit.
If that is the case, then you can pass a rectification entry in the Current Year, and show the difference in Prior Period Adjustment Account which is according to AS5. It is also preferred if you add a note showing clarification as to why this account has arose in your books in the Director's Report.
In case you want to discuss the case on call, you will have to use the option of TALK to a CA, on the Homepage or click on Talk to Rohit R Sharma below.
Hope this clarifies your Query.
Feel Free to get back for any further clarifications.
CA Rohit R Sharma.