Facts: company is engaging in trading business, he purchase goods from india as well as outside india.
Query:
1)What is the treatment if goods purchase from outside india and it is still on the way or not received yet and payment has been made in advance,and invoice for this is already been received,
eg. Value of Goods- 100000$ Date of Purchase- 1/1/12(rate 42 RS/$) Invoice received- 1/2/12 payment details- part payment - 60000$ on 1/2/12 (Rs/$ 43) final payment- 40000$ on 22/2/12 (Rs/$ 44)
suggest- 1) When should i recognized purchase? 2) is it possible to recognized purchase in next year? 3) what should be the treatment as per AS 11? 4) Can we recognized payment as advance for purchase in last year, if yes then what is the treatment of fluctuation of rate as per AS 11? 5) what will happen if only part payment is made and final payment is made after 31 march?
I just want to confirm as the goods are not yet received by you, what is the meaning of purchse date in your question since it is different from the date of Invoice.
CAclubindia
