Credit card collection - disclosure - revised sch vi
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 June 2013
Dear All,
We are in the retail industry and allow credit cards swiping against sales made by us. This amount is huge in volume.
Please advise whether we disclose the same as:
a) Trade receivable
b) other current asset or
c) cash and cash equivalent.
We are in the retail industry and allow credit cards swiping against sales made by us. This amount is huge in volume.
Please advise whether we disclose the same as:
a) Trade receivable
b) other current asset or
c) cash and cash equivalent.
26 June 2013
When u swipe your credit card, i understand that money will be credited on next day in ur bank account.
Since customer has given the money, there is no question of receivable from the customer. Hence, this cannot be disclosed as a "Trade Receivable".
But since u have not realised cash in ur account, it may be appropriate to disclose the same as "Cash in Transit" in Cash and Cash equivalents note.
PS: Give a reference to cash in transit that this amount is receivable on account of credit card transactions.
Since customer has given the money, there is no question of receivable from the customer. Hence, this cannot be disclosed as a "Trade Receivable".
But since u have not realised cash in ur account, it may be appropriate to disclose the same as "Cash in Transit" in Cash and Cash equivalents note.
PS: Give a reference to cash in transit that this amount is receivable on account of credit card transactions.
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