Dear Sir/Madam,
I want know regarding a/c entry for Annual Maintenance Contract. I have paid fully AMC amount in advance.
So Kindly advice to regarding pass the journal entries.
Thank & B'regrads
Kirpa Nath Jha
+91-7838944477
INTERMED HEALTHCARE PVT. LTD. (Accountant) (31 Points)
04 October 2013Dear Sir/Madam,
I want know regarding a/c entry for Annual Maintenance Contract. I have paid fully AMC amount in advance.
So Kindly advice to regarding pass the journal entries.
Thank & B'regrads
Kirpa Nath Jha
+91-7838944477
Sandeep Garg
(Consolidation and IndAS Application)
(1056 Points)
Replied 04 October 2013
Repair & Maintenance Dr.
Prepaid Expenses Dr.
Bank Cr.
Shivani
(Learner)
(1881 Points)
Replied 04 October 2013
I think AMC amount should be divided between current FY and next FY
Current FY amt is expense
Next FY is prepaid expense
Repairs dr (current FY amt)
AMC dr (total amount minus current FY amt)
to cash/bank
Ganeshbabu K
(Audit and Tax Advisory)
(48559 Points)
Replied 04 October 2013
1)
Dr.M/s .AMC contractor A/c
Cr.Bank A/c
Cr.TDS Deducted 194C
(being full payment for AMC paid in advance)
Note: Mandatory to deduct TDS on advance payment if it exceeds threshold limit as per 194C)
2)
Dr.R&M EXPENCES/MAINTAINANCE A/c
Cr.M/s.AMC Contractor A/c
Note: expences to be made by considering whether prepaid expences required or not
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 05 October 2013
Agree with ganesh babu.
First debit full amt in to contractor account by this entry
advance to contractor a/c(total advance paid)
To bank(paid by bank)
To TDS payble (tds amt)
Now whenever contractor provides you bill then do this entry
Repairs & maintenance a/c(by amt which is related to current year)
Prepaid R & M exp a/c(i by amt which is related to next financial year)
To advance to contractor a/c (total advance paid earlier)
To bank(full bill amt-advance amt)
To TDS payble on(bill amt- advance amt)
CA Mitesh N Kothari
(9821662799)
(391 Points)
Replied 05 October 2013
1) Rep & Main(Exp)dr
Prepaid AMC(Current Asset)dr
to Contractor
2) Contractor Dr
to Cash
To TDs
Gaurav Jain
(ca)
(42 Points)
Replied 05 October 2013
1)At the time of Advance Payment :
Party A/c Dr
To Cash/ Bank A/c
To Tds on Contractor
2) At the time of booking of Exp:
Repair & Maintenance A/c Dr
To Party A/c
RUPESH KADAM
(SR.ACCOUNT EXECUTIVE)
(28 Points)
Replied 06 October 2013
I think firstly we shoul know the Amt of AMC charges of yearly. If the charges exceed limt of TDS u/s 194 C then we will have to deduct TDS @ 2% (IF Benificary is Company) or 1% (If benificiary is individual).
And paass the JV as follows :
E.g. if we will have to pay AMC charges to ABC Co. then entry will be :
1)ABC CO Cr.
TDS (194C)Cr
By AMC Charges (Creat the ledger under Indirect Exp) Dr.
2) ABC Co Dr.
To CASH/Bank A/c Cr.
balaji
(accounts executive)
(24 Points)
Replied 07 October 2013
CAclubindia
