AMC INCOME

This query is : Open

faru faru (Querist)
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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

BHAI(SAI) DUPARE

BHAI(SAI) DUPARE (Expert)
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01 May 2011 First one is important u r maintained wich type of accounting system:
Cash or Mercantile

If
1. Cash System
Cash A/c -------Dr.
To AMC Income
( Income Booked on the basis of Receipt Only)

2. Mercantile

Client A/c------Dr. 10,0000
To AMC income A/c 10,000
( Full Amount of 10,000)

Receipt entry
Cash / Bank A/c----Dr
To Client A/c

faru faru

faru faru (Querist)
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02 May 2011 i have a better idea...

1/4/2011 SUNDRY DEBTORS A/C DR. 5000
TO DEFERRED AMC INCOME 5000

1/4/2011 DEFERRED AMC INCOME A/C DR. 1000
TO AMC INCOME 1000

THIS ENTRY WILL BE MADE IN EACH MONTH TILL RS. 5000 IS FINISHED FROM DEFERRED INCOME A/C

NOW AFTER 6 MONTHS AGAIN WE WILL PASS THE ENTRY

SUNDRY DEBTORS A/C DR. 5000
TO DEFERRED INCOME 5000

NOW EACH MONTH WE WILL AGAIN BE PASSING THE BELOW ENTRY TILL THE AMT IN DEFERRED INCOME IS FINISHED:

DEFERRED AMC INCOME A/C DR. 1000
TO AMC INCOME 1000

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