In case of Housing Society, The Amount contributed from the members specifically for the purchase of Asset, This amount is over and above maintenance deposit.
Please correct me if wrong: Following entries were passed.
1. While taking Amount from members
Bank A/C Dr.
To Members A/C. Cr(Grp-Current Liabilities)
2. At the time of purchase of Asset
Asset A/C. Dr.
To Bank A/c. Cr.
The Problem here is the Asset has been purchased but Liability is still standing in Books,
How to eliminate the liability entry?
CAclubindia
