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how to enter annual maintenance service bill in account?
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Answer / venkee
It's not a charge like installation charges or something
which covers replacement of non guarantee items in a
contract. Therefore its similar to Repairs and maintenance
and this need to be treated as expenditure in P&L account
| Is This Answer Correct ? | 3 Yes | 0 No |
It is an expenditure.So the entry should be
Annual Maintenance charges A/c Dr
To Cash or Bank or Service provider
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / guest
annual maintenance service paid amount is the amount paid
in advance that's why we show this as prepaid exp. ... and
debited on each month of the year......
| Is This Answer Correct ? | 3 Yes | 1 No |
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