Revenue

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surbhi chaturvedi (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

CA R SEETHARAMAN (Expert)

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

surbhi chaturvedi

surbhi chaturvedi (Querist)

24 April 2019 But how I show the advance and final payment in books of accounts.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

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

surbhi chaturvedi

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

CA R SEETHARAMAN (Expert)

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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