Wheather to book purachase or not ?

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2011 Suppose one party, i.e.individual , imports goods from foreign party and make advance payment for the purchased goods. goods are placed on ship on 25/3/2011 and it will be received by us on 10/4/2011. Risk & property in the goods are transfered to us.
wheather this purchase included or not in the fina yr 2010-11 or not as per AS-9 "REvenue recognition" or AS 9 only apply in for sales ?
pls give reply me?

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)

02 July 2011 It shall be recorded in the books of accounts under the head Goods in Transit as per AS 2.

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2011 OK. BUT IF WE NOT SHOWN AS PER ABOVE WAY THEN ANY CONTROVERSY EMERGE OR NOT .

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)

04 July 2011 It shall not be recorded in the books as purchases because there is no stock with you on March 31. Hence physical verification will not be possible.

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2011 ok but if we not shows this as goods in transit or purchase then its represent wrong bal sheet & P&L

thanks

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)

05 July 2011 Yeah..Financial Statements will not reflect true and fair view. Hence it should be shown under Goods in transit.

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