04 July 2008
MrAXZ co. received goods on 30.03.2008 but received invoice only on 25.04.08. How should the liability be recorded? Should we create a liability in the name of the creditor or park in the deferred account?
05 July 2008
In the given case goods have been received by MrAXZ co on 30.03.2008. Once the ordered goods have been received then it is MrAXZ co who has to fulfill its obligation. As a result a libility has arisen as on 30.03.2008 and the amount should be booked and parked in the name of the Suppliers. Even the entries may be passed on the basis of PO or Challan accompanied with the goods. In case of any difference the entry may be modified at the time of receipt of bill. In case the Final Accounts have been finalised and audited before the receipt of bill then the amount of liability may be revised in the current year by giving effect to the Opening Stock account.
CAclubindia
