Suppose we are in Restaurant business. We have certain tie-ups with different entities. We have mutually agreed that we will give our services on Barter basis.
I have query :
1) how could we account this in our Books of accounts?
2) will this Barter system affects on our Cash flow statement? If yes, please explain....
31 May 2012
Barter assumes the exchange of goods and / or services. The value of consideration is same. You need to account for this at "arm's length price" (Sale as well as purchase)
CAclubindia
