accounting of purchase

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BASHA

BASHA (Querist)
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16 January 2017 what is date for accounting the purchase ?? whether the date of invoice or date of entry into entity??

Gokul Sharma

Gokul Sharma (Expert)
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16 January 2017 date of invoice for accounting to be followed.
you can maintain seperate register for goods inwards

BASHA

BASHA (Querist)
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16 January 2017 but if you receiv the goods after 31st march for ex on 2april and my accounts have been finalised on April 1st then what is the solution

Roney

Roney (Expert)
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17 January 2017 It should be according to who bears the risk and rewards associated with the asset and when. Normally risk and rewards are transfered to the buyer when the goods are delivered at the entity. Most companies with a well established internal control system raise a goods received note before they recognize purchases in their books.