accounting treatment

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mohammed lateef

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69 Points Posted on 28 March 2010

hello friends,

Help me what is the accounting treatment for the following example Suppose i have taken a chit from a company for Rs 2500000/- every month i have to pay 50000/- Rs towards it now past 4 month iam paying 32500/- Rs only and iam getting a dividend of Rs 17500/- but the company is crediting me with 50000*4months 200000/- Rs the dividend amt anyways decreases every month till the payment of it and i have to pay for 50 months so, what will be the treatment for this as now iam paying only 32500/- towards chit i should consider it as fixed deposit only and the dividend which iam getting from the company should i consider and recognise or not plz help if some more infomation required plz reply me.

Replies (3)

Guest

Posted on 28 March 2010

are you getting dividend from continous last four months ??

Guest

Posted on 28 March 2010

company declared divd. once a year but you are getting from last four months . pls specify!

mohammed lateef

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69 Points Posted on 28 March 2010

sorry friends it's not dividend it's commission every month actually 50000/- i have to pay for 50 months which will make 2500000/- but past four months iam paying 32500/- only but the company is crediting me for 50000/- the remaining balance 50000-32500/- = 17500/- iam getting as commission should i recognise it or the amt which iam paying 32500 only should be considered as fixed deposit.