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Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2015 what is difference between instalment sale and instalment payment as perAS9 ......?

Arpit Shah

Arpit Shah (Expert)

25 March 2015 Instalment sales When the consideration is receivable in instalments, revenue attributable to
the sales price exclusive of interest should be recognised at the date of sale. The interest element should be recognised as revenue, proportionately to the unpaid balance due to the seller.

Arpit Shah

Arpit Shah (Expert)

25 March 2015 Sales where the purchaser makes a series of instalment payments to the seller, and the seller delivers the goods only when the final payment is received Revenue from such sales should not be recognised until goods are delivered.

However, when experience indicates that most such sales have been consummated, revenue may be recognised when a significant deposit is received.

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