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Bidyananda kahar (Querist)
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21 May 2009 What will happen if at the end of financial year i receive a purchase bill of Rs.10,000.dated 28/03/09, but didn't receive goods till 31 st March.

Plz mention wt will affect on Balance Sheet
and P & l a/c and what journal entry should i made for this.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 May 2009 Goods in transit a/c Dr
To creditor

In the b/s goods in transit will be shown under the head current assets.

In p& l a/c nothing will be shown.

CA Suresh Choudhary

CA Suresh Choudhary (Expert)
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21 May 2009 Agree with Expert

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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22 May 2009 Other treatment would be to account for it as purchases since the bill is of that financial year and accoridngly follow the accrual concept.
The following entry will be passed:
Purchases A/c............Dr
To Creditor A/c

Since purchase is booked, the goods would also be included in closing stock(as stock in transit).

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