09 May 2011
One of our client in real estate business developing various types of flats, commercial plots and later on selling the same. For the viriuos reasons they have to give variuos types of bank guarantees to variuos authorities.For issuing the bank guarantees,bank is keeping margin money. On this margin money bank give interest on a regular basis. Whether this interest income need to be deducted from the project cost or should we credit this to the Profit & Loss Accoubt as income?
CAclubindia
