Depb credit

This query is : Resolved

CA Sanjana arora (Querist)
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22 June 2013 hiiii...we have exported some items on which DEPB credit facility is available it is 1% on the value of our product.and we have received some of them but other applications is pending..so in what account i should credit the received amount as income and what should be the accounting treatment of pending application..hows it will be presented in balance sheet.

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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22 June 2013 DEPB Receivable A/c Dr
To DEPB (Income)

For Booking on Accrual Basis

Bank A/C Dr.
To DEPB Receivable

When Money is received

(If recd at a discount then Entry will be accordingly)

Pending should also be booked in Income

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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22 June 2013 In case pending amount is not received you can write it off.

CA Sanjana arora

CA Sanjana arora (Querist)
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22 June 2013 Thanks for your reply..but please confirm me that in my 2012-13 PL B/s should i book all the pending application as income? Is it sure that it will be received?

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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22 June 2013 Basically if you are following the Accrual basis of accounting then Book it as Income in 2012-13 and the ones pending might be receivable in 2013-14, Incase it is not received and you are certain that it will never be receivable then you can write it off in 2013-14

CA Sanjana arora

CA Sanjana arora (Querist)
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22 June 2013 ok..thanks a lot

CA Sanjana arora

CA Sanjana arora (Querist)
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24 June 2013 Treatment of DBK (drawback) is also same?
DBK means all industries rates for drawback fixed by the govt.

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