What is Accounting treatment of Repair & Maintanance Exp in case of organisation which get reimburesment from client,
in case of specific maintanance contract of organisation of client ,
1)whether it should be shown as Repair & main exp in Profit & Loss a/c and shows gross income(including R &M exp) or
2) shown as income net of Exp (after deducting exp)
As there any clarification on it ?
If it is purely reimbursment You can pass follwing entry:-
1. At the time of expenses payment on behalf of Clent
Client's A/c Dr. x x x x x x
To Cash Bank A/c x x x x x
2. At the receiving time
Cash /Bank A/c Dr. x x x x x x
To Client's A/c x x x x x
I think there is not requirement of initially showing expenses and than income.
Triveni Turbine Limited
Bengaluru
CA
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O P Bagla & Co LLP
New Delhi
CA Inter
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