As and accounting treatment of import merchant business

Shilpa Baid (Article and CA Final) (157 Points)

14 July 2015  

Dear Sir,

Please guide me in Accounting entries & AS Compliance for  an Import Merchant .
Facts are:
1.Indian office as Import agent take orders & advances from indian customers directly sending to Foreign Principal office.

2.Principal orders to mills for manufacturing and generate invoice to Indian customers.

3. Mills manufactured Goods and send docs to Indian Import agent & Shipment done. Indian Import agent collects balance amount from Customers and release the docs.

4. 4 Angels of Indian agent, Priciple HO , Mill & Customer is to incorporate in this transaction.

Indian merchant Importer send invoices of commission & Get foreign remittance on basis of
1.Closed Transaction &
2. Transactions Negotiated with Banks

Please guide me in accounting for the same and As 11 impact on this.

Regards
Shilpa Baid