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Prepaid


Krishna (Manager - Genesis Tax Consultant)     14 March 2018

Krishna
Manager - Genesis Tax Consultant 
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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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satish (teaching)     14 March 2018

satish
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sure, it should be treat as advence money paid in advance for the rest of the period, for which service is not yet received. 

 

 

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Krishna (Manager - Genesis Tax Consultant)     14 March 2018

Krishna
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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.

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satish (teaching)     14 March 2018

satish
teaching 
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date of receipt of invoice ?

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Krishna (Manager - Genesis Tax Consultant)     14 March 2018

Krishna
Manager - Genesis Tax Consultant 
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1st Jan 2018

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satish (teaching)     14 March 2018

satish
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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

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Krishna (Manager - Genesis Tax Consultant)     14 March 2018

Krishna
Manager - Genesis Tax Consultant 
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Thank you so much:-)

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satish (teaching)     14 March 2018

satish
teaching 
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most wellcome Mr. krishna


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