Goods received and included in stock,but invoice not receive
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 August 2012
Goods received and included in stock,but invoice not yet received. How to Account as per Indian GAAP. Please help with journal entry
03 August 2012
You need to make provision for Purchases for the actual Invoice value of stock included
03 August 2012
Agreed with the reply
04 August 2012
As per the principles of Indian GAAP, once the goods are received, it becomes the property of the buyer. Receipt of the invoice from the seller is only a formality. Hence as per the conservative accrual concept, we can credit the seller and debit purchase account, if the actual price is known.
But in my view you cannot account for any input credit (for VAT and Central excise) as invoices are mandatory for claiming that.
If the exact price is not known, you should make a provision for expenses by creating equal liability and expense.
Also, the cost of such goods received must be taken for valuation of closing stock.
The entries could be:
if exact price is known:
Purchase Dr.
To, Creditor for purchase
and include the same amount in closing stock also.
If exact price is not known:
Purchases Dr.
To, Provision for expenses
But in my view you cannot account for any input credit (for VAT and Central excise) as invoices are mandatory for claiming that.
If the exact price is not known, you should make a provision for expenses by creating equal liability and expense.
Also, the cost of such goods received must be taken for valuation of closing stock.
The entries could be:
if exact price is known:
Purchase Dr.
To, Creditor for purchase
and include the same amount in closing stock also.
If exact price is not known:
Purchases Dr.
To, Provision for expenses
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
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales return eway bill
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- REGARDING GST LIABILITY/....
- STCG FOR GOLD ETFs
- TDS related Query_Liquidated Damages
- Specified Profession
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
