Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Entries of running bills

Ajeet (CA) (239 Points)

07 June 2010

How to make Accounting entries of running bills of construction work?

Reply
Follow
Share

2 Replies

V P Narasimhan (Accounts Manager) (791 Points)
Replied 31 July 2010

Dear Friend

Suppose if a RAB 1 value is 13,52,852 after some months another bill RAB 2 raised for 18,32,547 the treatment is as follows: The RAB 1 tobe accounted for 13,52,852 wheras the RAB 2 has to be accounted for the difference from the RAB 1 viz., (18,32,547 (-) 13,52,852 = 4,79,695 If you look at the other angle say the total value of work done it should be equal to RAB 2 . One important thing has to be considered is it should be before taxes & duties say service tax ,less materila if supplied by the client. If a thrid party involved in certification we should always consider the Certified Value only in all aspects.