Somebody please let me know whether "plant returned to site" will be credited to the Contract Account or not..
Ruchika Ravi (CA Final Student) (110 Points)
20 December 2013Somebody please let me know whether "plant returned to site" will be credited to the Contract Account or not..
Subhash
(None)
(122 Points)
Replied 20 December 2013
Hello, 
Think of Contract Account as a personal account.
As a contractor, when you are giving the material to the contract:
Contract account: Personal: Debit the receiver.
Material account: Asset: Credit what goes out.
Similarly, As a contractor, when you are getting back the material from the contract:
Material: Asset: Debit what comes in.
Contract: Personal: Credit the giver.
Therefore in Contract A/c,
By, Plant returned to site. 
Regards,
Subhash.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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