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classification of retention money

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(Querist)
13 July 2010 If in a contract it is mentioned that some percent (say 10%) of total contract amt will be payable after the final acceptance of contract and the deduction is made by the customer in all the bills for said 10%, then where will the amount retained be classified by the supplier? Will it be classified under Debtors or under loans and advances recoverable in cash or kind?
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HARIHARAN KRISHNAMURTHY

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HARIHARAN KRISHNAMURTHY (Expert)
13 July 2010 It will be under Debtors only.
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CA. BIJENDER KR. BANSAL

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CA. BIJENDER KR. BANSAL (Expert)
13 July 2010 AGREED
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rahul bhutoria

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rahul bhutoria (Querist)
13 July 2010 Thanks sir. But as per schedule vi of companies act, 1956 only those which have become due are classified as debtors/ receivables. when in contract itself it is mentioned that the payment of the retention money will be made only after the completion/ final acceptance then it has not become due.It gets due only at the completion. It has only accured. Now will it be classified as Debtors?
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