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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Custom milling income treatment
Replies (4)
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
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
Dr. expenses
Cr. Bank
expenses must be recognized
Dr Debtors/receivables
Cr. Sales
if the payment is not met but goods delivered
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 .
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