I have received an AMC contract from my Vendor for $12000 from 1st Jan 2018 to 31st December 2018.
My financial period is July 2017 to June 2018, I have made the payment to vendor on September 2018.
how I will account this in books? the meaning of prepaid is paid in Advance for the future period, but I made the payment after the financial period closed, in this case how I should treat it.
sure, it should be treat as advence money paid in advance for the rest of the period, for which service is not yet received.
CAclubindia
