I have received an AMC contract from my Vendor for $12000 from 1st Jan 2018 to 31st December 2018.
My financial period is July 2017 to June 2018, I have made the payment to vendor on September 2018.
how I will account this in books? the meaning of prepaid is paid in Advance for the future period, but I made the payment after the financial period closed, in this case how I should treat it.
Menu
Prepaid
Replies (7)
sure, it should be treat as advence money paid in advance for the rest of the period, for which service is not yet received.
My question is, I received an Invoice from my Vendor and the period of service is Jan 18 to Dec 18.
I have made the payment to Vendor in September 2018, and my financial period is July 2017 to June 2018.
What Journal entry I will book in FY July 2017 to June 2018
and FY July 18 to June 2019.
I have made the payment to Vendor in September 2018, and my financial period is July 2017 to June 2018.
What Journal entry I will book in FY July 2017 to June 2018
and FY July 18 to June 2019.
date of receipt of invoice ?
1st Jan 2018
1) 1-1-2018 AMC charges A/c (2016-17) Dr. <first 6 months amount>
AMC charges A/c (2017-18) Dr. <last 6 months amount>
To vendor A/c <12 months amount>
2) 30-06-2018 first 6 months amc charges is to be debited to profit and loss a/c
profit and loss A/c dr. <first 6 months amount>
To AMC charges <first 6 months amount>
3) 30-9-18 on payment of liability
Vendor a/c Dr <12 months amount)>
To Bank a/c
4) 31-12-18 finally AMC charges for 2017-18 charged to profit and loss a/c
Thank you so much:-)
most wellcome Mr. krishna
Recent Topics :
- What should I do after receiving a GST Show Cause
- Discuss and Download CA Inter Question Paper Septe
- Hi experts needed some help
- Gift of Immovable Property u/s 92 of Income Tax Ac
- NSE BSE Pre-open session changes from 7 September
- Financial statements for non corporate entities
- Hi experts need some help
- Is SAP FICO a good career option for finance and a
- Direct Cost booking
- TDS on Property Purchase Paid
Related Topics :
CAclubindia
