20 February 2016
we being a company entered in an AMC with another co. the party has given us a bill for the period 1st dec'15 to 31st may'16 of 50% amount of rs.35000/- excluding service taxes & cess. (Total AMC is Rs.70000/- excl taxes) & we are to make the payment on feb'16. my query is what will be the journal entries to be passed in the given case when 2 months expense relates to next F.Y
20 February 2016
1)Dr. AMC EXPENCES 70000*4/6 Cr.CONTRACTOR 70000*4/6 (Expence till march) 2)Dr.PREPAID EXPENCES 70000*2/6 Cr.CONTRACTOR 70000*2/6 (Expences for april and june)
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