Hey Friends,
One of my Clients (Registered Company) under took a contract for supplying computer and accesories to the Govt of Haryana.
The total cost of the contract is around 11.22 crs.
The above said amount will be paid in 10 installments in a period of 5 yrs (i.e 2 installments per year).
The invoice is raised only for the respective installment as and when they occur and not for the whole 11.22 crs
The assets will be transferred to the govt only when the last installment is paid.
The down payment for the contract has been received and govt has deducted TDS at the rate of 2%.
My question is how to account the above transaction,
1.Hire Purchase
2.Lease agreement
3.Due Basis
CAclubindia
