AS-16 qUERRY

802 views 1 replies

Can any one explain what is the difference between cash payment received and Progress Payment Received  by giving some detailed numerical examples

Replies (1)

dear sir

so far i can interpret the diff. , is as follow

cash payment received means receipt of payment in cash which may or may not be any basis. It may be in form of advance receipt or receipt during continuation of work or after the completion of work or may be a fixed amount of installment as agreed between the parties concerned

But when we talk about progress payment received, there must be a nexus with the performance of work contract ( including professional and technical work). There may be a calculation of amount to be received or paid as a percentage on the work certified or estimated work completed as agreed by the parties. So there must be a basis of calculation of payment.

for example if a contractor has untertaken a project to build a residential complex for Rs. 1 cr. and project should be completed within a period of 1 year. Payment is decided as progress billing and payment within 1 week then

the contractor will raised bill quarterly/monthly (say) on the basis of work completed by him, may be expressed in % terms, then after satisfaction of the contractee and engineer the % completion of project is assessed and payment to the contractor is appoved and paid, such payment is made 4/12 times as the case may be, during the project period. Such type of payment may be called as progess payment. here payment is decided as per the status of work

cash payment is simple and generally fixed in amount or lump sum, may be seen in hire purchase transaction, lease transaction, financial arrangement no matter how the asset/money is used.

the

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details