My Friend is working in a Private Limited company. which is ingaed in work orders for CGWA Aprovals.
Payment Schedule is as below
1. 40% advance with work order
2. 40% on Submission of Reports
3. balance at Completion
So when Revenus should be Recognised in Accounts. Because every Work order takes aprox 5 to 6 Months for Completion
Suggest Journal Entries also
Sir,
Revenue shall be entered into the books once the project is totally completed. As per payment received, the should be treated as advance from party on account.
Thanks
| Originally posted by : Nitil Kr. Agarwala | ||
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Sir, Revenue shall be entered into the books once the project is totally completed. As per payment received, the should be treated as advance from party on account. Thanks |
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Agreed but incase if the transaction starts in one financial year and gets completed in another or next financial year then you should recognize the same as AS-7 (Construction Contracts).
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