Aloka Innovative Business Solutions Pvt. Ltd, an HR outsourcingcompany based in Hyderabad provides temporary...

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Aloka Innovative Business Solutions Pvt. Ltd, an HR outsourcingcompany based in Hyderabad provides temporary staff to ABCManagement College, Hyderabad. The company entered into followingtransactions with ABC Management College and the hired employee.The company would provide an employee for the college at Rs.30000per month. ABC Management College prepaid the amount for the periodJanuary to June 2015 in December 2014. The financial year for thecompany ends in December. Aloka pays salary of Rs. 20,000 to theemployee one month late as per contract with the employee. How doyou record the above transactions in the books of Aloka in themonths of December and January? Conclude what are the benefits ofthe term of contracts they have entered with the two parties.

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Transactions in the books of Alok innovative business solutions private ltd for the month of December 2014 will be recorded as follows 1For prepaid receipt of Rs30000 per month for the services to be rendered in January to June 2015 recording through entry will be as follows Particulars Dr Cr Bank Ac Dr To Advance receive from ABC management college See Answer

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In: AccountingAloka Innovative Business Solutions Pvt. Ltd, an HR outsourcingcompany based in Hyderabad provides temporary staff...Aloka Innovative Business Solutions Pvt. Ltd, an HR outsourcingcompany based in Hyderabad provides temporary staff to ABCManagement College, Hyderabad. The company entered into followingtransactions with ABC Management College and the hired employee.The company would provide an employee for the college at Rs.30000per month. ABC Management College prepaid the amount for the periodJanuary to June 2015 in December 2014. The financial year for thecompany ends in December. Aloka pays salary of Rs. 20,000 to theemployee one month late as per contract with the employee. How doyou record the above transactions in the books of Aloka in themonths of December and January? Conclude what are the benefits ofthe term of contracts they have entered with the two parties.