Revenue Recognition

This query is : Resolved

anmol (Querist)
Follow

29 October 2008 dear Experts,
At first i wish you a happy diwali,

sir i have a query-

1)A Tour Operator( Pvt Co.) who arranges foreign tours receives advances on 1/1/2008 for the tour which will commence on 15/04/2008.The tour operator makes profit out of some commission on Air tickets and also a service charge from customers.he follows accrual system of Accounting.

my specific query is when the tour operator should realise the revenue.
is it
(a)in the FY 07-08, on the date of receipt or
(b) in the FY 08-08 in the year in which the tour actually commences.

thanking you sir

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

29 October 2008 What is the methodology of accounting the operator employs?

anmol

anmol (Querist)
Follow

29 October 2008 sir,
it is accrual method of accounting. i have already mentioned.
please reply sir

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

30 October 2008 If he follows accrual system then the income is recognised only when the tour commences.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Shubham Jain

Sanjay Ratnani

Anirudh Sharma

6380177036

Chnmaya parhi

Subscribe Now

Revenue Recognition

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Accountant

Article Assistant

GST CONSULTANCY

GST CONSULTANT