11 October 2012
If we receive tender fees in respect of construction of building on land then what should be the treatment of that tender fees ? Whether it should be considered as capital receipts and deduct it from the cost of project or it should be treated as revenue receipts and credit into P&L a/c .. ? Plz guide me.
11 October 2012
Tender receipts are repayable back to the bidders. They are only advances held and neither revenue or capital receipts. Hence pass the entry Bank A/c Dr To Tender deposits payable . Show the tender deposits under current liabilities or advances and deposits
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