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.
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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
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