Please help me
We have AMC with company We are paying in 4 Installments.
1st installments in Advance and so on every 3 months.
sometimes we delay payment also, it creates problem in the year end.
suggest appropriate answer by giving one of example.
thankyou for helping me.
Dear sanil, Suppose yoc have paid amc to abc rs 10000 and ist instalment paid in advance of rs 2500
you can made the journal entries as follows
abc dr 2500 cash/bank cr 2500
(amount paid for amc in advance)
AMc Dr 10000 abc cr 10000
(Amc charges due)
For iind instalment
abc dr 2500 cash/bank cr 2500
for iiird instalment
abc dr 2500 cash/bank cr 2500
for ivth instalment
abc dr 2500 cash/bank cr 2500
(assume Tds not applicable)
R P S K & Associates
Nashik
CA Inter
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