Deposit

This query is : Resolved

SANKARA NARAYANAN (Querist)
Follow

29 May 2014 Dear Team,

I am working in a leading Private Company

We have two types of Dealership Deposit

1) Refundable
2) Non Refundable

For Rs.10,000/- Deposit we are providing Android Technology Instrument charging Rs.5000/-Non Refundable and Balance Rs.5,000/- on conditional Basis that they have to pruchase the product value Rs.15,000/- so that Rs.5,000/- will be refundable.

TIME Limitation is 1 Year for Purchase

How can we treat in Accounting entries where to group this deposit and tax implications.

Regards,
Sankara Narayanan
Sankaranarayanan@hotmail.com

Rupesh Jain

Rupesh Jain (Expert)
Follow

29 May 2014 r/sir

you are not mention the time in which they purchase then you make refund of rs. 5000/-

you can calculation of amount refundable or not refundable at the end of year on the basis of period in which they calim refund.

when you receive the security then you make entry in ledger name as

Security refundable/received from Dealer a/c

SANKARA NARAYANAN

SANKARA NARAYANAN (Querist)
Follow

29 May 2014 There is no time limitation for Purchase only concern is how to treat for accountability where i have to group in accounts

Rupesh Jain

Rupesh Jain (Expert)
Follow

29 May 2014 you can show in current liability side.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now