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Debit notes

918 views 1 replies

Roshan A

Chartered Accountant

458 Points Joined October 2009

What should be treatment of Debit Notes raised by creditor for late payment to creditor in following cases:

DN dated 27/04/2011 relating to late payment of Invoices of FY 10-11 being booked in books of FY 12-13.Whether Prior Period or not? (Note: Payment of these invoices of FY 11-12 was made on 12/2/11)
DN dated 18/04/2012 relating to late payment of Invoices of FY 11-12 being booked in books of FY 12-13.Whether Prior Period or not? (Note: Payment of these invoices of FY 11-12 was made on 18/4/12)

Replies (1)

shiv shankar rawat student CMA

Manager

263 Points Joined May 2010

Dear Roshan

As above case supplier have raised a debit note towards ansgt late payment. Pls clearify is't payable or not as per supplier contract .

IF yes, then Ist we have to consider the said amount in our book as a provision before closing the F.Y.

if we forget

Than take a managment approval and discuess with supplier they will change, date of Debit notes otherwise both exp is consider in the books as a prior period exp.

Note:- In that case a seperatre disclosure /detail is to be shown in company note to account as per AS-05.

Rgds

S.S.RAWAT