Accounting of purchases and sales

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CHANDRASEKHAR REDDY (Querist)

29 October 2010 We are in Consulting and engineering business , previously we are purchasing materials for our projects and selling in the same month to customers ( not maitaining any stocks) Now this month we have purchased some materials for one of our project but sales invoice will be raised in next month after completion of implementation.
Can we take purchases in system and sales can take in next month? Is there any effect ? I known below mentioned effects 1. Purchases will be there without sales ( expenses without income)2.I think We need to maitain stock.

Any one can help me out how to take

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

29 October 2010 Sir , every time you are doing smae thing , first making the purchase then pass the entry for sale. The only change is both the dates are in different month. just you the stock , and show it P/L as increase in stock and balance sheet as assets.

M Prabhakar Menon

M Prabhakar Menon (Expert)

31 October 2010 When u purchase any item and it is not sold it remains in your stock at the cut off date

CHANDRASEKHAR REDDY

CHANDRASEKHAR REDDY (Querist)

02 November 2010 we are not maitaining any stock previously we use to purchase materials and sale in the same month but this time our sales is depend on completion of work so we dont want to show stock in our books.

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