Bills of exchange
This query is : Resolved
pankaj kumar
(Querist)
12 October 2011
silly but gud Question.
i studied dat B/R appeared under heading Loans n advances in d Balance Sheet of a company...........not under current assets. What is d logic behind putting it Loans n advances.
i studied dat B/R appeared under heading Loans n advances in d Balance Sheet of a company...........not under current assets. What is d logic behind putting it Loans n advances.
CA Pushpendra Gaur
(Expert)
12 October 2011
Refer the new Schedule VI page 33
as per it, Non current assets includes Long term trade recievable (including trade receivables on deferred credit basis)
many of the times Bills Recievables are drawn for long period and also many of the times the Bills Recievable are drawn for the purpose of long term financial arrangements
as per it, Non current assets includes Long term trade recievable (including trade receivables on deferred credit basis)
many of the times Bills Recievables are drawn for long period and also many of the times the Bills Recievable are drawn for the purpose of long term financial arrangements
CA Pushpendra Gaur
(Expert)
12 October 2011
When the trade recievable B/R are drawn for long period they r to be classified under "Non Current Assets"
When they r drawn for long term financial arrangement they r to classifed under Long term Loans and advances
It is the long term purpose, which is the determinable criteria for the same
When they r drawn for long term financial arrangement they r to classifed under Long term Loans and advances
It is the long term purpose, which is the determinable criteria for the same
CA Pushpendra Gaur
(Expert)
12 October 2011
When the B/R are short term and drawn for sales or trade, they are to classified under "Trade Receivables" under Currents Assets.
For the short term Financial arrangement, to be classified under Short term loan and Advance.
Always remember, it's the purpose which is the determining force, not the name B/R itself
For the short term Financial arrangement, to be classified under Short term loan and Advance.
Always remember, it's the purpose which is the determining force, not the name B/R itself
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