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Custom milling income treatment

20 November 2023

In case of custom milling if a Miller has completed all its milling during the FY but didn't raise a bill for its job work. Miller can show all his expenses in P&L.How Miller can show its job work income not realised ( as no bill has raised)in Its book ?

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4 Replies

Yasaswi Gomes new (Finance ) (4479 Points)
Replied 22 November 2023

Miller is milling others farmers rice without raising an invoice? Its all expenses. If he received cash from farmers, then its a sale and if he didnt receive cash, its debtor and sale trwatment

Pradip Tirkey (5 Points)
Replied 22 November 2023

If the Miller did not get payment in a year ,then can expenses can show in profit loss account. Can we adjust expected income from custom milling in p&l or only go with expenses made in custom milling

Yasaswi Gomes new (Finance ) (4479 Points)
Replied 22 November 2023

Dr. expenses

Cr. Bank

expenses must be recognized

Dr Debtors/receivables

Cr. Sales

if the payment is not met but goods delivered

Pradip Tirkey (5 Points)
Replied 22 December 2023

Miller's got paddy from govt agency against BG and return back certain percent of rice . Usually at the end of financial Miller are not sure when they get their custom milling commision,so they don't book commision income for that year. They adjust all their expenses incurred in milling work with stock in process to show profit .