sale recognition

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2012 we are selling products on credit basis, if the purchaser gives the amount in 3 days, we give discount of 5%.

My doubt is when should we recognize as sale
1. on the date of sale (OR)
2. on the date of amount received

I think as per AS -9
revenue should recognize when the amount is certain, so we should recognize sale on the date of receipt.

am i correct ?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

09 February 2012 No; Sale would be recognize on the date of sale.
OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2012 here, we are offering 5% discount if the purchaser pays in 3 days.

so, i think certainity of collection is not there.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

09 February 2012 The discount allowed would be indirect expense to the seller at the time of the receipt because it is cash discount.
OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2012 thank u tirumala

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2012 can you please tell me the difference between EX-factory and FOR price

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok