12 June 2013
What should be treatment of Debit Notes raised by creditor for late payment to creditor in following cases:
1. DN dated 27/04/2011 relating to late payment of Invoices of FY 10-11 being booked in books of FY 12-13.Whether Prior Period or not? (Note: Payment of these invoices of FY 11-12 was made on 12/2/11) 2. DN dated 18/04/2012 relating to late payment of Invoices of FY 11-12 being booked in books of FY 12-13.Whether Prior Period or not? (Note: Payment of these invoices of FY 11-12 was made on 18/4/12)
12 June 2013
Thanks Regarding the answer to query no 2 can i book interest from the due date of making payment of concerned invoice to 31/03/2012 as prior period and book remaining in current years financials as the company knew that such liability would arise later and didnt provide for any provision as on 31/03/2012??
CAclubindia
