cost of purchase
This query is : Resolved
Tushar goel
(Querist)
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.
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
(Expert)
21 October 2010
Rs. 1350
Tushar goel
(Querist)
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
(Expert)
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
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
(Querist)
21 October 2010
CAN U PLEASE GIVE ANY EXPLANATION IN SUPPORT OF OUR ANSWER REGARDING COST OF PURCHASE
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
(Querist)
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
(Expert)
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.
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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