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.
CA Kishore Tallam
(Expert)
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.
Message likes :
1 times
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
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GSTR9 Annual Return
- Ito add credit side of bank
- Employee secondment
- Rent agreement of House of deceased person
- GST ITC as per notification 12/2023- central tax
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Gift to nri relatives resides in usa
- LLP audit and disclosure
- Applicability of tax on invoice
- Capital gain on commercial property and investment in residential property
- Import of Capital Machine
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
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
