01 May 2011
sir my company is an engineering company. we have amc incomes. suppose we enter into an amc contract with our client for Rs 10,000 payable in two instalments (6 months) then how will the income be recorded? plz reply ASAP
03 May 2011
Better way would be to debit the Company for the full amount crediting the AMC Income Account. If it crosses over to next year the proportionate amount can be credited to Advance Income account. When cheque for Rs.5000/ is recd Bank account is debited crediting parties account (Both times)