Earning s on FOB basis

This query is : Open

sushil (Querist)
Follow

04 December 2010 Dear Experts,

i need to provide figures of earnings on fob basis for f.y. 09-10.

to arrived this value i ve taken total exports bill realised during the period 09-10 & i ve deducted foreign freight & insurance from the total exports bill realised during the yr 09-10.

is this correct method?
if not pls let me know what is the right method or formula for the same.

Thanks in advance
Sushil.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
Follow

04 December 2010 Yes , This is the correct method.

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

04 December 2010 YES, You are right.

Free on board (FOB). This pricing term indicates that the cost of the goods, including all transportation and insurance costs from the manufacturer to the port of departure, as well as the costs of loading the vessel are readfiled in the quoted price.
This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.

"FOB Price does not include Shipping freight and Insurance charges"

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

04 December 2010 thanks experts,

mr. sushil you are right way.

FOB =COST OF GOODS SOLD IN INR (MINUS)FREIGHT AND (INSURANCE)

THANKS AND REGARDS,

sushil

sushil (Querist)
Follow

05 December 2010 thanks to all,

but still one doubt is there, which export sales bill to consider for calculation, all those raised in the f.y. 09-10 or all those which are actually realized in the f.y. 09-10 irrespective of their bill date.

waiting for reply..

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now