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Discussion > Accounts >

ACCOUNTING ENTRIES  OF IMPORT

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Pages : 1






[ Scorecard : 270]
Posted On 10 May 2007 at 16:20 Report Abuse

HELLO

i AM FACING A PROBLEM ON  IMPORT PURCHASE  : -

[size=14][face=Arial]OUR CLIENT HAS PURCHASED IN JUNE 06 1000MTS. OF  IMPORTED RAW INPUTS ON HIGHSEAS BASIS.INSTEAD OF BOOKING WHOLE INVOCIE VALUE FOR THE QTY. , HE HAS ADOPTED THE BOOKS ON FACTORY RECEIPT BASIS ( I.E. AS PER CENTRAL EXCISE PATTERN).[/face][/size]THE PROCESS GOES LIKE THIS :

[size=14]HE PAID CUSTOM DUTY TO COMM. OF CUSTOM IN ADAVNCE THR. TR-6 FOR 100 MT. OF MATERIAL.
AND PAY VALUE OF 100 MT. TO CREDITOR FOR RELEASE OF DEPLEDGING ORDER ( DO).

SUPPOSE HE RECEIVES 85 MT.OUT OF ABOVE  IN JUNE06  MONTH  , HE BOOK PURCHASE VALUE FOR 85 MT. ONLY AND TAKE CENVAT INPUT CREDIT ON THAT QTY..   IS THIS A RIGHT APPRAOCH?[/size]

[b]NOW THE PROBLEM, HE IS FACING  :[/b]

[size=14]DURING THE YEAR HE HAS LIFTED 800 MT. AND REST 200 MT. IS LEFT AT PORT UNLIFTED , NO DUTY AND ADAVNCE FOR ( DO ) HAS BEEN PAID ON IT. HE WANTS TO  BOOK THIS QTY. IN PURCHASE A/C. WHILE   CREDITING  THE SAME AMOUNT IN CREDIT SIDE OF MFR. ACC. UNDER  CLOSING STOCK. IF HE IS RIGHT UPTO TO NOW, IS  UNPAID DUTY FIGURE IS TO BE INCLUDED IN CLOSING STOCK VALUE. EXPLAIN ON POSSITION OF CREDITOR AND ENTRIES FOR QTY. WHEN ACTUAL RECEIVE IN NEXT YEAR IN BREIF. [/size]

SUGGEST FOR ACCOUNTING ENTRIES AND SAME THROUGH TALLY 7.2 ALSO.

ONLY THOSE WITH   ACCURATE CONCEPT,  PLZ SEND THE DETAILS TO MY MAIL ID -

das.ramkrishna97 @ rediffmail.com

SHALL BE HIHGLY OBLIZE.

Online classes for CA CS CMA



Cma

[ Scorecard : 25]
Posted On 10 May 2007 at 16:20

GO to- www.ORKUT.COM and find community of Cost and Management Accountant. you can Posted ur query to this community. you will get best answer from this community. there are Exp member in this community for central exise and customs.




Rishi

[ Scorecard : 31]
Posted On 10 May 2007 at 16:20


As u have described the accounting treatment for the import made by ur client.Its not the right treatment giving a fair record of the transaction.
so u should record the transaction in this manne.

at the time of  payment of advance payment of cust.duty to COC (com. of Custom)

AED (Advance) A/c
To COC

COC A/c
To Bank

At the time Actual receipt of goods (when the liability for custom arise) - in case advance has been made.

Purchase (Grouping) A/c
To AED (Advance) A/c

As in ur case u r explaining if he is not yet made any advance or no payment is made for duty he can debit the puchase side if the liability for the same has arrived.

so in ur case he should debit the purchase side by crediting the liability towards COC .

RISHI



Rishi

[ Scorecard : 31]
Posted On 10 May 2007 at 16:20

Hi ramkrishna

Plz give me some more information about ur query so that i can exactly suggest u about the same .

RISHI



The One

[ Scorecard : 374]
Posted On 10 May 2007 at 16:20

The One Says:

I have sent you a pm with detailed answer on all points let me know of further queries.



Rakesh Kumar Singh
Job

[ Scorecard : 45]
Posted On 09 October 2007 at 13:31

What do you mean by AD code. From where it can be taken.



ravi sankar
Chartered Accountant

[ Scorecard : 154]
Posted On 18 October 2007 at 20:40

During purchase (whether imports or natiational), it is always the case of issuing an order for more quantity AND receive the lot in many instalments. If it is local or national purchase your payments are not complicated. IF IT IS IMPORTS ADDITIONAL CONTROLS ARE REQUIRED. IN IMPORTS, 1)UNLESS YOU PAY THE CUSTOMS DUTY, YOU (ALOMOST) NOT GET THE POSSESSION OF THE GOODS. 2) YOUR RECEIPTS ARE IN LOTS AND HENCE THE VARIOUS COMPONENTS FOR Cduty,Frt etc ARE PAID IN DIFFERENT TIMES. HENCE IMPORT MATERIALS COST OF PURCHASE CAN ALWAYS BE CONTROLLED WITH A CONSINMENT No ATTACHED TO A PARTICULAR RECEIPT. THIS CONSIGNMENT No IS THE KEY FOR THE COST DATA BASE HAVING DIFFERENT COMPONENTS HAVING BEEN PAID AT VARIOUS TIMES. WHEN YOU PAY DIFFRENT PAYMENTS OF VARIOUS COMPONENTS OF VARIOUS CONSIGNMENTS, BLOCK THEM AS ADVANCE PAYEMNTS FOR EACH OF THE COMPONET COST WHICH SHOULD BE CLASSIFI-ABLE IN TO CONSIGNMENT Nos i.e one advance payment account for each componet cost and each of them shall be having datas like a)consignment no, qty, rate, date paid etc. ONCE A CONSIGNMENT IS RECEIVED, LOOK FOR ALL THE COMPONENTS OF THE COST LIKE BASE PRICE, CDuty, Frt ETC FROM THE DATA BASE, GROUP THEM AND ARRIVE AT THE RECEIPT VALUE. dURING THE ACCOUNTING, WAITING FOR THE COMPONENT COST TO BE PAID WILL DELAY THE ACCOUNTING OF THE RECEIPT OF A PARTICULAR CONSIGNMENT SINCE IT MAY DELAY THE ISSUE PRICING. HENCE USE A INTERMEDIARY "CONTROL-ACCOUNT" TO ACCOUNT THE RECEIPT ON ESTIMATE BASIS AND ADJUST THE ESTIMATES WITH ACTUAL VALUES IN THE CONTROL ACCOUNT. DIFFERENCES IF ANY CAN BE ACOUNTED ACCORDINGLY WITH PROPER RELIANCE ON 'MATERIALITY" OF A TRANSACTION-DIIFERECES.. IF U STILL REQUIRE GUIDANCE, CONTACE. Ravi Sankar



Sachin
Accountant

[ Scorecard : 23]
Posted On 26 May 2008 at 10:22

i wanted to know whole about import procedures abot FOB or CIF i have heard all the terms Regarding these B/L trace the consignment to know where actually it is please give more detailed how function of Import carried out what about custom duty how custom duty is calculated in case of marbles imports etc

 




koduri mohan
Audit-Executive

[ Scorecard : 55]
Posted On 02 February 2011 at 11:34

Dear All,

while accounting of import purchases whether we should consider Bill Of Entry(BOE) Price or Invoice Price, If it is BOE price where we arrive Assessing Value(AV) by adding Notional Frieght Charges and Transit Insurance 1.125%, but its not actual we paid. Please suggest me  Whether i should take BOE Price Or Invoice Price and also give me necessary notes on this.

 

Thanks & Regards

Mohan Koduri

Ph No.7795113787



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