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Accounting treatment for payment of soil

Sonu Kumar (Account Manager) (665 Points)

11 January 2018

Dear Friend,

we have Issued an DD to Bihar State Mining Corporation for Soil for Filling of Road Work at our Project Site. my Question is may i book the Expenses in Royality Head of Accounting.

Regards :

Sonu Kumar

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4 Replies

sudharshan reddy (CA ) (42 Points)
Replied 11 January 2018

Primafacie answer is "No"..

pls reword the question properly .

Sonu Kumar (Account Manager) (665 Points)
Replied 11 January 2018

Thank You for Your Reply,

Sir, we have Issued a Demand Draft in Favour of Bihar State Mining Corporation for Soil Purpose, BSMC Have alloted an Area for Soil Cutting, The Soil is Used in Road work (Road Filling work). If the Expenses will be not Booked under the Royality Head then Suggest the Proper Head for Accounting.