08 December 2011
Sir, The instance is 1. Advance Amount paid to Annual Maintenance Contract (AMC) 2. Contract period is 01.05.11 to 30.04.12 3. Amount paid Rs 12 lakh(100%) on 01.07.11 4. Now, Expense should be debited from july 2011 to April 2012? OR May 2011 to April 2012 ( Rs 1 lakh each)?
08 December 2011
Expense should be debited from May 2011 to March 2012 at1 lakh per month 1 lakh should be accounted as pre-paid expense as on 31/03/2011
CAclubindia
