Book entry for amount deducted as penality
This query is : Resolved
10 October 2009
Hi..
This is Neetal.
Plz help me
A company has deducted amount as penality for not performing duty well from a secutiry company bill
My question is how that amount which is deducted as penality should be treated or pass a entry in the books..
This is Neetal.
Plz help me
A company has deducted amount as penality for not performing duty well from a secutiry company bill
My question is how that amount which is deducted as penality should be treated or pass a entry in the books..
11 October 2009
1) A Co ltd Dr 1000/-
To security charges 1000/-
(Being bill no.....dated....
raised towards security service
charges)
2) Penalty Dr 250/-
To A Co Ltd 250/-
(Being penalty deducted by
latter against bill no...
dated.....)
3) Bank Dr 750/-
To A Co Ltd 750/-
Being cheque received against
bill no.... dated..... towards
full settelement)
To security charges 1000/-
(Being bill no.....dated....
raised towards security service
charges)
2) Penalty Dr 250/-
To A Co Ltd 250/-
(Being penalty deducted by
latter against bill no...
dated.....)
3) Bank Dr 750/-
To A Co Ltd 750/-
Being cheque received against
bill no.... dated..... towards
full settelement)
11 October 2009
Very correct exmple
13 October 2009
Thanks for the reply......
But where the A/c head penalty will be shown in books.As an income or accrued income??i.e. in P&L a/c or in B/S??
Plz reply
But where the A/c head penalty will be shown in books.As an income or accrued income??i.e. in P&L a/c or in B/S??
Plz reply
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Sales of goods of amount Rs97 lakhs to a party
- GST rate and HSN code for sale of racing horses
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
