What is the accounting treatment of closing stock and other things when revenue is not recognized ?
1 Replies
CA. Mayur
(Service)
(147 Points)
Replied 28 September 2013
Revenue is recognised when substantial risk and rewards related to goods has been passed on from seller to buyer. In case where inventory has been transferred but seller possess the substantial risk and reward than revenue will not be recognised and such transfer will be considered as stock transfers and not sale. In such cases the buyer will not be principal but instead he will act as agent of seller.
Recent Topics
- With no itr2 still available, how to pay self asse
- ITR-2 & 3 Hide and Seek on I-T Portal
- Need to mention PPF account in ITR1 Bank account l
- FOREIGN STUDENT ENROLLMENT AGENT
- Can take the itc
- Employer NPs contribution
- Error while filing ITR 1
- Query on Advance payment U/S 194Q
- Crypto Payments & FEMA Compliance - Need Exper
- Richest Chartered Accountant in India alive
Related Threads
Trending Online Classes
CAclubindia
