For disputed client
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 September 2014
I HAVE SOLD MATERIAL LAST YEAR BUT THERE WAS SOME DISPUTE WITH CUSTOMER .SO WE THINK WE WILL NOT GET AMOUNT AND NOT TAKE IN SALES REGISTERS . AND NOW HE GIVEN A CHEQUE . SO WHAT I HAVE TO DO. WHICH ENTRY CAN I PASS
18 September 2014
pass prior period entry in ur books
18 September 2014
pass prior period entry in ur books
18 September 2014
no need to make prior period entries. You didnt book revenue as there was uncertainty regarding realization. So recognize the revenue in the current period. However, you need to ensure that stock has been properly adjusted to reflect the above.
18 September 2014
if there is dispute then that much provison should have been made along with revenue recognition in that previous year as per as-9
18 September 2014
what if the income has not be recognised itself. for creation of provision, you are first accepting certainty of revenue. What is the revenue itself is uncertain. Provision is created for doubt about collection. So first revenue is to be created. If no revenue is created, no provision is required.
Further, the above all is applicable only for accrual basis. In cash basis, there wont be an issue anyways.
Further, the above all is applicable only for accrual basis. In cash basis, there wont be an issue anyways.
19 September 2014
the question does not say that revenue was uncertain as sale was made of materials.
19 September 2014
If you rwad d query sale was never recorded...the question of provision arise only after booking of sales
19 September 2014
if read the opening words it says material was sold last year but there was dispute with customer.
19 September 2014
And what does the second line says? The impact on p&l will come from second line. And if you read my first reply it covers d material issue too.
19 September 2014
suppose he follows accrual basis then he needs to book sales as material is already sold and make a provision for sale
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
- TAN for Partnership
- Treatment of Pension ?annuity returns on PMVY
- Soyabean hsn code and gst rate
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Long Term Service award taxability in hands of company
- Free lancer income
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- LTCG for Assmt year 26-27
- Showing Gift from relative in ITR for this year
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
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
