how to accounting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2011 Dear all,

done a contrect Rs. 6,90,000/- for termite control in current year and we paid 80% of current year.rest 20% paid in next two year.(as a security)

Now how much amount book in current year eatiher 80% or 100%.

Thanks

Vishnu Aggarwal

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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22 May 2011 Liability need to book 100% current year which you already done the work

Pankaj Gandhi Jaiswal

Pankaj Gandhi Jaiswal (Expert)
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07 June 2011 AS 7 is for income and if your case is for expense follow accrual system book 100% which has been accrued and payment is a matter of procedure and convenience so ignore this

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