Bill Discounting With Recourse
This query is : Resolved
25 November 2010
What is the accounting treatment if a company discounts its bills (i.e. debtors) with bank, with recourse i.e. the company has a liability to pay money to the bank in case the debtor fails to pay the bank.
Issue involved:
Should the treatment involve knocking off the debtors from books against the amount received from bank and a contingent liability should be recognised
or
should we continue to keep debtors in books and also recognise a corresponding liability of bank.
Please provide suggestion in the light of either indian GAAP or IFRS
Issue involved:
Should the treatment involve knocking off the debtors from books against the amount received from bank and a contingent liability should be recognised
or
should we continue to keep debtors in books and also recognise a corresponding liability of bank.
Please provide suggestion in the light of either indian GAAP or IFRS
25 November 2010
Bill discounting is the time being loan arrangement only, this will not clear the Debotors. because even you are discounting the bill the actual debtor has to pay the amount to you only not direct to bank, so we need to create the liability against the bill discountng and maintain separate ledger
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
- Post Office RD Interest
- Reporting Income under Section 44ADA
- Itr 1 processing
- Building and other construction workers welfare cess act 1996
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Bank Accounts in Balance Sheet for ITR 3
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- Income of an individual
- Delisted shares sold in off market/ Rebate u/s87A
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
