Please let me know the Accounting treatment for Electricity Deposits and Interest accrual on such deposit.
Is it correct to account such deposits in Other Deposits? Shall we need to disclose it separately in the Financial Statements.
I thought, it would be disclose separately, as we are paying as part of the statuatory compliance. Please clarify in this regard. You can mail the reply to my mail ID "ivchandrasekhar@yahoo.co.in" too.
08 April 2011
Yes the electricity deposits are to be shown separately. The interest accrued / earned shall be treated as business income and shall be credited to Profit and loss account under indirect income.
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