RUNNING BILLS

Concept of Running Bills and accounting submitted by contractors

Description	RA-1	RA-2
Bill Value	100	150
Bill Certified	80	120
Retention	10%	10%

Note : Liability to be accounted for RA- 1 is 80 and for RA-2 is Rs120

            Bill RA-2 is cumulative so Bill to be accounted is 120-80=40

            Retention % to be applied on Bill Certified

Entry for RA-1

Dr Expense   80

Cr  Liability          72

Cr Retention         8

Entry for RA-2

Dr Expense 40

Cr Liability        36

Cr Retention      4