- This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
- You must be logged in to reply to this topic.
As per the contract, a project has to be delivered, and then for a period of 2 years a retention amount is held for 10%of the contract value approximately, and 60%is received as advance and 30% is received on the completion of the project.
after the completion the 90% will be recorded as revenue, 60 % as revenue across period and the 30% at the point of time.
the 10%, what is the double entry for it ..please kindly help
The 10% will be held as deferred income and released once the retention is no longer held.