Ra bills entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2014 SIR,
1.can u please tell me the entry for R.A.BILL in books of a/c.?
2.and tds applicability on that
thanks in adv

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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07 January 2014 RA bills are raised during construction or contract activities and this is part consideration of your contract value. So the gross value cheque plus TDS should be booked as income and TDS to be calaimed as taxes paid by you. Now how to book it.

When you raise the RA bill then you debit the contractee and credit 1st or 2nd or 3rd RA bill and when you receive the payment you debit bank and credit the contractee. The balance standing to the RA bill will represent income and at the end of the year you have to transfer the RA bill amount to contract account on the percentage of work completed basis or if general accounting is followed then the entire amount of RA bill is to be booked as gross receipt and value the closing stock.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2014 AND SIR WHAT TREATMENT IF WE(CONTRACTEE) RECEIVED RA BILL FROM PARTY(CONTRCTOR) TO MAKE PAYMENT TO THEM..?