Suppose Rs.1,00,000 is received as advance to complete a service on 1/4/2014 and the total Value of service is Rs.2,00,000 and was completed on 30/6/2014 and to be billed on this date.What are the step by step accounting entries to be passed to record the above transaction?? Also please consider service tax for the above transaction.
01/04/2014-
Bank A/c dr 1,00,000/-
to party_1,00,000/-
30/06/2014
Party dr 1,00,000/-
To Income Received 1,00,000/-
I m assuming this 2 lac is inclusive of service tax.
Clarifications:
1.your bank a/c is credited with the receipts.
2.party ledger is nil at the end.
3.income generated is credited.
For payment of service tax, you need to give some more details like RCM or partial etc..
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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