Treatement of accounting entry

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2011 Dear Sir,
I Have Raised A Sell Bill Amt. Rs. 12,00,000 In The Month Of March 2011. (Sales international Package tour). But Tour service Provided In The Month Of May 2011. After The end Of The F.y. And Co. Also Booked Hotel , Transport And Other services Current F.y. So. In This Case My last Year Profit Is increase By rs. 12 Lac And C.Y. Loss Rs. 12 Lac. Pls Tell Me About Accounting Policy And Procesure.

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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16 September 2011 I believe th receipt of money against the SAles International Package tour is Income received in advance and shpuld ba treated as part of income in the current year. The income should be recognised when the services were provided. Even you book the SAles as Income an additional Journal entry is required to reduce the SAles and book as Income received in Advance

The entry of Sales was right but additional entry is required to be passed

CA Sumat Singhal

CA Sumat Singhal (Expert)
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17 September 2011 For revenue recognition conditions laid down by AS 9 is to be satisfied i.e. 1. Property in goods has been trfd. 2. Significant risk and rewards have been trfd. 3 no uncertainty regarding collectibility.

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