contract accounting
This query is : Resolved
11 November 2008
Hi
Pls help me to in the folowing issue
My company is a trading company and it is having projects also.Majorly air conditioning projects each project may take years to compleate and 60 % of the project will be the inventory cost and 40% for instalation charges.
i would like to know, the accounting policy can be adopt for. presently while issuing the materials it is considered as Sale.
i belief if we choose contract accounting, the invoicing should not afect sales account.
Pls let me know in detail how the contract accounting works under this siuiation.
Thanks
Pls help me to in the folowing issue
My company is a trading company and it is having projects also.Majorly air conditioning projects each project may take years to compleate and 60 % of the project will be the inventory cost and 40% for instalation charges.
i would like to know, the accounting policy can be adopt for. presently while issuing the materials it is considered as Sale.
i belief if we choose contract accounting, the invoicing should not afect sales account.
Pls let me know in detail how the contract accounting works under this siuiation.
Thanks
11 November 2008
How can you consider issue of materials as sales even before the propery covered therein is effectively transferred?
11 November 2008
hi s.srinivas
ya...its wrong i just joined here, so i just want to know the correct treatmen.pls help me out
ya...its wrong i just joined here, so i just want to know the correct treatmen.pls help me out
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
- CAPITAL GAIN REDEVELOPED FLAT
- Requirement under FEMA &RBI
- CLOSING STOCK QUERY
- REGARDING ITR FILING QUESTION
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Rent claimed on building given on permissive possession basis
- TDS refund Indemnity Bond
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Residential status of non resident
- PF wage ceiling
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
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
