Prakhar Kalani (CA Final Student) 25 September 2013
What is the accounting treatment of closing stock and other things when revenue is not recognized ?
CA. Mayur (Service) 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.
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