Basic questions

1)Sales Can be recognized when All risks rewards and ownership of goods transfered to Buyer.A reference can be given to terms &conditions in Purchase order to decide on this.

(AS9-CAN BE REFERED)

2)As i said above it is when your risk and rewards and ownership transfered to buyer.

Ex: Suppose as per terms agreed on purchase order if it is your responsibility to deliver goods to customer gate you can recognize sale when customer received and accepted goods in his gate..till that time it is Goods -in- transit and not sale transaction

(Generally these type of verification very much required in Verification of Cut-off procedures in case of Statutory Audit)

Thanks & regards

Ganesh babu k

3.In a Simular way Purchase transactions also can be recognized when risk and reward,ownership on goods transfered to buyer..

Ex: on purchase terms it is there that sellor is responsible to deliver the goods to Customer factory gate

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So in this case Purchase can only be recognized when Customer accepted goods in factory gate,,which can be technically so called as GRN/MRIR(Goods received note/material receipt and inspection report)