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INTER DIVISIONAL REVENUE

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Querist : Anonymous

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Querist : Anonymous (Querist)
11 October 2010 I am working as Accounts Manager of a security service company.We have manpower,Electronics and cash management services.Thses are the three divisions.

The electronics division has a Annual Maintenance Contract with Cash Management Service Department for Maintenance of their Electronics Servelience systems.

The Electronics division wants their revenue to be accounted.

Please guide me the accounting to be made in both of the Divisions.Whether we need to raise bills for such service on Cash Management Division.

Is their any statutory compliance which company has to complied with.
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CA Shailesh Kumar Bhagat

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CA Shailesh Kumar Bhagat (Expert)
14 October 2010 You should not raise the bills, just transfer the cost of maintenance to other division.
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Querist : Anonymous

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Querist : Anonymous (Querist)
14 October 2010 Thank you,Sir
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