cost of purchase

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Tushar goel (Querist)
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21 October 2010 what is the cost of purchase in case of import from outside india when we made advance payment for the same.eg
we made payment of $30 @40 Rs =Rs 1200 on 30.06.2010
and we get the delivery on 27.07.2010 when the rate of $ is 45 Rs means total Rs 1350. so what is the amount should be booked in books of accounts is Rs !200 or RS 1350.

CA Navin Jain

CA Navin Jain (Expert)
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21 October 2010 Rs. 1350

Tushar goel

Tushar goel (Querist)
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21 October 2010 WHY WE ACCOUNTED Rs. 1350 IF WE ALREADY MADE THE PAYMENT IN ADVANCE BECAUSE AS PER AS-11 IN CASE OF FORWARD EXCHANGE RATE THERE IS NO FLUCTUATION LOSS OR PROFIT AND GIVE EXPLANATION IN SUPPORT OF OUR ANSWER

CA. Aryendra

CA. Aryendra (Expert)
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21 October 2010 Your cost will be depends on actual invoice of supplier;

from above you have made 100% advance payment in such a case you cast will be Rs. 1200/-

If it was the part payment then

Rs. 1200 + (Invoice Amount - Advance Payment)* Exchange Rate

Tushar goel

Tushar goel (Querist)
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21 October 2010 CAN U PLEASE GIVE ANY EXPLANATION IN SUPPORT OF OUR ANSWER REGARDING COST OF PURCHASE

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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21 October 2010 As per As 11 exchange loss arise due to buying and selling of goods should be transferred to ptofit / loss a/c as exchange loss.

Tushar goel

Tushar goel (Querist)
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22 October 2010 as-11 says that if you made payment after purchase means purchase on credit then there should be a exchange loss it does not talk abt in case if we made a advance payment of purchase. and if it is written can you plz give me the para no

CA. Aryendra

CA. Aryendra (Expert)
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22 October 2010 Dear Sir,

I think there in no need to write. I paid you paid in advance and subsequently there is no increase/decrease in cost. the cost would be the actual amount you have paid.

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