Maintenance charges collected by builder

This query is : Resolved

Rakesh Bandal (Querist)
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19 November 2018 Sir/Madam,
Builder collects maintenance charges before formation of Society of Members, and after formation of society any amount collected in excess is refunded to flat holders in societies bank account or any excess expended is collected from society

Query
Where to show amount collected from flat holders and expenses incurred (i.e. in P & L Account or In balance Sheet)

Notes
GST charged at time time of collection is 18% i.e. maintenance service provider and ITC is also claimed for services availed

Thanks

Amol S Joglekar

Amol S Joglekar (Expert)
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19 November 2018 Let us assume the name to be XYZ society.
While collecting charges
debit Bank A/c
Credit maintenance charges collected for XYZ proposed society.

While incurring expenses
Debit maintenance charges collected for XYZ proposed society
Credit Bank account.

While transferring balance to XYZ society
Debit maintenance charges collected for XYZ proposed society
Credit Bank account.