contract accounting
This query is : Resolved
11 November 2008
Hi
Pls help me to in the folowing issue
My company is a trading company and it is having projects also.Majorly air conditioning projects each project may take years to compleate and 60 % of the project will be the inventory cost and 40% for instalation charges.
i would like to know, the accounting policy can be adopt for. presently while issuing the materials it is considered as Sale.
i belief if we choose contract accounting, the invoicing should not afect sales account.
Pls let me know in detail how the contract accounting works under this siuiation.
Thanks
Pls help me to in the folowing issue
My company is a trading company and it is having projects also.Majorly air conditioning projects each project may take years to compleate and 60 % of the project will be the inventory cost and 40% for instalation charges.
i would like to know, the accounting policy can be adopt for. presently while issuing the materials it is considered as Sale.
i belief if we choose contract accounting, the invoicing should not afect sales account.
Pls let me know in detail how the contract accounting works under this siuiation.
Thanks
11 November 2008
How can you consider issue of materials as sales even before the propery covered therein is effectively transferred?
11 November 2008
hi s.srinivas
ya...its wrong i just joined here, so i just want to know the correct treatmen.pls help me out
ya...its wrong i just joined here, so i just want to know the correct treatmen.pls help me out
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