Revenue


(Querist)
23 April 2019
Sir,
Suppose I am a shipping company and I come under a contract of sale of a ship for 11million.but I did not get the possession.
I am getting a advance payment of 6 million.
So let me know, when I will recognize my sale and how I book this amount and what the treatment will recognize when I will get final payment.

Thanks
Regards
Surbhi


CA R SEETHARAMAN (Expert)


Click to Talk 24 April 2019
Recognise sale on transfer of ownership. Keep the money received under advance. Get final payment on transfer of ownership.

surbhi chaturvedi (Querist)
24 April 2019
But how I show the advance and final payment in books of accounts.

CA R SEETHARAMAN (Expert)


Click to Talk 24 April 2019
Show it as advance on the books. Final payment adjust against liability.

CA R SEETHARAMAN (Expert)


Click to Talk 24 April 2019
Show it as advance on the books. Final payment adjust against liability.

surbhi chaturvedi (Querist)
24 April 2019
Sir, actually the possession will transfer on last payment, then we can't recognize the liability, now please tell me how we show advance and how we show the final payment.


CA R SEETHARAMAN (Expert)


Click to Talk 24 April 2019
Show all receipts under advance till final payment is received. Adjust the advance when final payment is received.


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