Pleaze help very very urgent

Accounting Entries 826 views 4 replies

 

 a real estate co. has received a fixed amount for power and maintenence, the expenses in relation to which is to be incurred by the co. in future. the amount is non refundable.the company has invested the amount in FDR.
tREATMENT BY cO.
 
TREATED AS LIABILTY IN BALANCE SHEET
INTT. ON FDR CEDITED IN PROFIT & LOSS A/C
 
IS THIS TREATMENT IS RIGHT OR WRONG ?
WHAT IS THE CORRECT TREATMENT
 
Replies (4)

TREAT AS OTHER INCOME . CR

FDR DEBIT

Dear akash

Please check whether the co has made a prov for the estimated liab for power and maintenace.interest on fdr should be treated as other income.

sir aklesh u mean to say that the company should treat  the reciept for maintenance and power as income ,and then make a provision for estimed liability for power and maintenance.

and interest on fdr should be credited to p/l a/c

 

i wanna know to all type of expenses & loses


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