Accounting for imports
This query is : Resolved
02 August 2009
Consider the following situation
abc ltd pays advance for purchases on 10/4/2009 for purchase of goods from china. Goods are delivered to abc ltd on 1/5/2009 with invoice date as 25/4/2009. Payment for the balance amount is made on 1/6/2009 by ABC ltd.
When should the entry for purchase be recorded in the books of accts of the company?
would it make a difference if no advance is paid before or the entire amount was paid later on?
Should appropriate treatment under AS-11 be given for such import of traded goods?
abc ltd pays advance for purchases on 10/4/2009 for purchase of goods from china. Goods are delivered to abc ltd on 1/5/2009 with invoice date as 25/4/2009. Payment for the balance amount is made on 1/6/2009 by ABC ltd.
When should the entry for purchase be recorded in the books of accts of the company?
would it make a difference if no advance is paid before or the entire amount was paid later on?
Should appropriate treatment under AS-11 be given for such import of traded goods?
P B Srivathsan
(Expert)
04 August 2009
It is sufficient to pass the purchase entry on the date of receipt by abc ltd. The payment for the goods has no relevance to passing the purchase entry. AS 11 is applicable even for traded goods.
P B Srivathsan
(Expert)
04 August 2009
It is sufficient to pass the purchase entry on the date of receipt by abc ltd. The payment for the goods has no relevance to passing the purchase entry. AS 11 is applicable even for traded goods.
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