accounting treatment

As per my opinion the entire invoice should be booked in the year in which the invoice raised. It does not make any difference with the contract of payment.

Yes whole amount of Invoice to be boooked....

is it corrrect  to raise invoice for the entire amount in the current year?

becoz payment of Advance Tax  and other things comes into picture, since it is a small firm i need to know exact treatment for the a bove.

You need to raise the invoice for the whole amount only....in the current year.. regarding the payment of tax you can pay before 31st march....

or else raise the invoice in the next year.. on 1/4/2010, but see that the payer also dont have any problem....

I agree with C.A. Shivang

Revenue in case of rendering of services is recognised under As 9

As per As 9 :

i) Revenue from services is generally recognised as the service is performed.

ii) And no significant uncertainties exist about the collection of amount of service charges.

As in your case the service is performed , i think revenue should be fully recognised but subject to reasonable certainty about the receipt of service charges. so on the basis of the past history about the approval of contract revenue should be booked accordingly.

U can raise the invoice  for the whole amount....

hi , i want to know the accounting entry for the following transaction...

my company taken a working capital and term loan from a pvt bank  in 2008 january, from  there interest is paying monthly upto december 08, after that the compnay went into financial crunch and unable to pay a single rupee to that bank. from there onward interest keeps accumulate. One of the official from company side  and met the bank official and agreed for 50% settlement.  so our company liability comes to 50% only and balance 50% waived by the bank.

what is the accounting treatment for 50% waiver by the bank into compnay books. that 50% is extraordinary item or special treatment is there.

regards

trinadh