I made a project agreement with one of my customer.
I will provide him an Analyzer Machine for Running Pathological Test
Cost ৳ 1,00,000
MRP ৳ 2,00,000
He will own and pay only half of the MRP ৳ 1,00,000
And I will own half of the Machine.
So, I made this journal entry-
Debit > Project A (Asset) > ৳ 50,000 [Half of the cost, should it be half of the MRP?]
Credit > Machine (Inventory) > ৳ 50,000 [Half of the cost, should it be half of the MRP?]
Now, I need to make an invoice of ৳ 1,00,000 for him to show sales of the half ownership.
Is it right to entry Qty. 0.5 into above entry?
And Qty. 0.5 into sales invoice?
He will generate money by running test and give it to me whole.
I will sell him materials for test which will be adjusted as following-
Test revenue generated by him: ৳ 50,000
I sold materials to him: - ৳ 10,000
Remaining Revenue: ৳ 40,000
Now, we will split 50/50 of this amount.
I can’t think the right way to make the right entries to keep things easy.
So, I need your kind help.