Ackruti City Limited.

Revenue Accounting (SOP)

Code Chart of Accounts Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Total
331201 Milestone Debtors (Excluding debtors to the extent VAT & ST) A - - 50.00 50.00 - 50.00 150.00
231304 Advance from Customer (D.N) B 200.00 200.00 200.00 300.00 150.00 100.00 1,150.00
231305 Advance Unapplied C 150.00 50.00 - - 50.00 - 250.00

Process Revenue (income) as per Policy - Assumption D 300.00 220.00 300.00 200.00 200.00 - 1,220.00

Actual Cash Received (B+C-A) E 350.00 250.00 150.00 250.00 200.00 50.00 1,250.00
Process Demand Note + Amt Recd but unapplied - Milestone Debtors
(to know the Actual Money Received from Customer)

Money Received Against Demand Note only F 200.00 200.00 150.00 250.00 150.00 50.00 1,000.00
Process Demand Note - Milestone Debtors(B -A)
(to get maximum advance that can be adjusted against revenue and
to determine Total Revenue Debtors balance)

Maximum Advance that can be adjusted against

Revenue (What is recd. against demand) G 200.00 200.00 150.00 200.00 150.00 - 900.00
Process If F is greater than D then Ans=D, otherwise Ans =F

Total Revenue Debtors Balance (As per Policy) H 100.00 20.00 150.00 - 50.00 - 320.00
Process If D is greater than G then Ans=D-G, otherwise Ans=0

Unbilled Revenue I 100.00 20.00 100.00 - 50.00 - 270.00

Process If D is greater than zero and D is also greater than B then Ans=D-B,
Otherwise Zero.

Debtors to be Adjusted (H-I) J - - 50.00 - - - 50.00

Process Total Revenue Debtors - Unbilled Revenue

Process Unrealised Demand Notes K - - - 50.00 - 50.00 100.00

If B is greater than D and B is also greater than F then Ans=B-D,
otherwise zero
Note: The above working should be done for each flat and the entries should be passed in total (Building wise)

R.D. Kaphle Page 1 of Pages 2

Ackruti City Limited.
Revenue Accounting (SOP)
Consolidated Entry
331209-Debtors - Revenue Recognisition J Dr. 1,220.00
333253-Unbilled Revenue (Milestone Debtors in excess of Revenue Debtors) I Dr. 270.00
231306-Advance from Customers to be adjusted against Revenue Recognisition G Dr. 900.00
331295-Unbilled Revenue adjusted in Revenue Debtors 270.00
331296-Advance from Customers adjusted in Revenue Debtors 900.00
511103-Revenue from Incomplete Properties D Cr. 1,220.00
Trial Balance Line item total should tally with figures of this entry for all the debits & Credit on Cumulative basis.

231307-Unrealised Demand Notes K Dr. 100.00

331210-Milestone Debtors - Unrealised K Cr. 100.00
st
This entry has to be reversed on 1 Day of next accounting period.

R.D. Kaphle Page 2 of Pages 2