Entries in tally

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Dear Members,

I maintain our Society Accounts, our elevator control panel is dead and needs replacement. We have purchased a new one from the Elevator Company. Apart from the monthly maintenance charges we have decided to collect the funds seperately from all tenants for the new Control Panel. I want to maintain a seperate ledger account for the money collected in order to keep track of the amounts received. This ledger should nullify in the Balance Sheet after the payments are received because this amount is specially collected for covering the cost of the new Control Panel. The value of the Control Panel will be captalized. Can you please advise how to pass the entries. Thank you 

Replies (7)
1. cash received
cash for control panel. dr
To Tenant A/c


2. pay for control panel
control panel. dr
to Cash for control panel

3. trf tenant a/c
Tenant a/c. dr
to Contributions from tenant.

Thanks for your reply, can you please explain the entries 1 & 3, Thanks

How do I keep track of the amount received and this is not an income should not effect the P & L.

how to transfer stock in hand to Realisation Account

You can collect the amount from the tenant as advance and on the purchase of the control panel the same can be adjusted against the fixed asset.

Hi Amrita, I have collected the advance from the society member and put it under the ledger head "contribution towards lift control panel" which appears in the liablitity of the B.Sheet, this amount is deposited in bank, I have passed the JV for the control panel by crediting the supplier and debiting the asset. Now when we make the payment the cheque will be issued through bank, my query is what about the amount recd from members which is credited to 'contribution towards lift control panel' how do I nullify this account which account should I debit. Please advise, Thanks, Frank

debit cash/bank a/c and credit  tenant a/cs (2) when u purchase panel, debit panel a/c and credit bank a/c 

Thanks Mr.Rama, but the credit in tenants account will remain, I want to square off this account because this amount is received only for a specific reason that's for purchasing the Control Panel for the Lift. The Asset is already created when the Invoice was received, the supplier's account is credited and Control Panel is debited, I have capitalized this amount. This entries should not effect the P&L account. Please advise accordingly. Regards, Frank

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