sub contractor accounting

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Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2010
give the accounting treatment separatly.

a)Services rendered to Main contractor by sub contractor

b)Services provided by Main contractor to sub contractor

c) The normal account balance of sub contractor with main contractor debit or credit?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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21 September 2010 In the Main contractor books

Service rendered by sub contractor

Dr: Expenses a/c
Cr: Sub contractor a/c (subject to deductions)

Service provided by main contractor

Dr: Subcontractor a/c
Cr: Revenue a/c or other income a/c

in the books of Sub contractor

Service rendered by main contractor

Dr: Expenses a/c
Cr: Main contractor a/c (subject to deductions)

Service provided by sub contracor contractor

Dr: Main contractor a/c
Cr: Revenue a/c or other income a/c

Balance based on the transaction values may DR or CR

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2010 Thanks Gentlemen,

Can U give your mail ID for any further clarification.

Bye,

Prakash

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