The goods is in transit under the terms of CIF Import. This is our purchase from outside India. Can we make provision of Goods in transit of CIF consignment at the time of closing of books as on 31.3.?
01 September 2011
The date on which the liability of the buyer crystallises is relevent for the purpose of accounting for the transaction and the rate of exchange. It is the date/time on which the risk and rewards are transferred to the buyer as per sale of goods act, the entry in the books of accounts is made.
CAclubindia
