AS 11 Treatment
This query is : Resolved
16 July 2008
can u suggest me the accounting treatment for import purchases when the payment was made in advance
16 July 2008
lets take an example. you ordered goods worth $500.and you gave him advance of $200 and its inr value comes to rs.8500.
Ist entry is vendor a/c Dr.8500
to Bank a/c 8500
when goods come and you make final payment @rs.43.the entry would be vendor a/c dr. 12900, to bank a/c 12900.
now as er AS-11 , goods should be capitalised @ bill of entry rate lets say, Rs.44, then the accounting entry would be
goods a/c dr. Rs 22000(500*44)
to vendor a/c Rs.21400
to exchange fluctuation a/c 600.
this exchange fluctuation will go to P& L a/c at the end of the year. you can also refer my powerpoint presentation for more clarification. you will get the same in income tax files in this website or you can mail me at sachin.kataria@bankofamerica.com, i will send you from there
Ist entry is vendor a/c Dr.8500
to Bank a/c 8500
when goods come and you make final payment @rs.43.the entry would be vendor a/c dr. 12900, to bank a/c 12900.
now as er AS-11 , goods should be capitalised @ bill of entry rate lets say, Rs.44, then the accounting entry would be
goods a/c dr. Rs 22000(500*44)
to vendor a/c Rs.21400
to exchange fluctuation a/c 600.
this exchange fluctuation will go to P& L a/c at the end of the year. you can also refer my powerpoint presentation for more clarification. you will get the same in income tax files in this website or you can mail me at sachin.kataria@bankofamerica.com, i will send you from there
16 July 2008
more suggestions are welcomed
25 July 2008
I agree with your example sachin
You may further add that on balance sheet date of goods are not received you may have to restate the balance at balance sheet rate.
You may further add that on balance sheet date of goods are not received you may have to restate the balance at balance sheet rate.
05 October 2008
That is, the outstanding advances have to be restated at the rates prevailing on balancesheet date.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- When TDS on GST applied
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
