Performance bank guarantee related entries in tally
This query is : Resolved
22 February 2018
Sir My co. Got a new govt. Contract & made a performance Bank guarantee of 488000₹+ (bank charges extra) against a FD amount 500000 ₹. I wanted to know how to make all entries in tally accounting & under which accounting head I create accounts.
27 February 2018
Is anyone here to help me out..& clear my doubts
03 April 2019
There will not be any accounting entry for Rs. 4880000; only it will be shown by way of Notes under the Cash and Bank Schedule of Balance Sheet where the Fixed Deposits Grouping will be included that Fixed deposits to the order of Rs. 4880000 are earmarked and under lien with bank for performance guarantees. Also, it will be included under the contingent liabilities amount in Notes of Accounts.
However, accounting entry for bank guarantee charges (extra) will be passed viz.,
Bank Charges (P&L Expense) Debit as applicable for current year out of the amount debited by bank as bank guarantee charges;
Pre-paid Expenses (Balance sheet - Current Asset) for the remaining amount
To Bank (Credit - Payment) for the whole of bank guarantee charges
Hope this is clear
SivaramaKrishnan TS, BCom, FCMA
mysruthi@yahoo.co.uk
There will not be any accounting entry for Rs. 4880000; only it will be shown by way of Notes under the Cash and Bank Schedule of Balance Sheet where the Fixed Deposits Grouping will be included that Fixed deposits to the order of Rs. 4880000 are earmarked and under lien with bank for performance guarantees. Also, it will be included under the contingent liabilities amount in Notes of Accounts.
However, accounting entry for bank guarantee charges (extra) will be passed viz.,
Bank Charges (P&L Expense) Debit as applicable for current year out of the amount debited by bank as bank guarantee charges;
Pre-paid Expenses (Balance sheet - Current Asset) for the remaining amount
To Bank (Credit - Payment) for the whole of bank guarantee charges
Hope this is clear
SivaramaKrishnan TS, BCom, FCMA
mysruthi@yahoo.co.uk
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
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Regarding TDS Applicability For Director Remuneration
- Copyright software
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- FORM 26A APPLICABILITY
- When TDS on GST applied
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
