Author : Anonymous
( Author )
15 July 2012
RWA of our condominium is collecting Maintenance Charges, Club Charges from the residents which are being reflected in the Balance sheet. Apart from this RWA is paying Electricity Bill to the Electricity Department as a Bulk Domestic Consumer. This amount is recovered from the residents through monthly bills. In addition RWA is also collecting Electricity charges from the residents on account of Electricity generated from the Stand by Gen Set installed in the complex.
But no entries are made in the balance sheet on these two transactions.
The accounts have been audited and the balance sheet is signed by a chartered accountant. On raising this query a vague answer was given.
Please comment whether it is correct accounting practice.