Duty Credit Scrips

Are Duty Credit Scrips Current Assets, i purchased Scrips worth Rs. 100000 and booked them under current assets

Now I want to sell them, what accounting entries to be passed
Replies (6)
Quick Summary
This discussion explores the classification of Duty Credit Scrips as either current or non-current assets. Participants debate the validity period of these scrips, particularly concerning those issued after September 2021, and how this impacts their accounting treatment. The thread also outlines the necessary journal entries for selling Duty Credit Scrips, including potential discounts.

Duty Credit Scrips are valid for 24 months after 2016 , so in my opinion scrips should be non current Assets ( others)

when you sale them entry will be

Trade Debtors A/c Dr
To Duty Credit Scrips A/c Cr
( Booking of sales of Scrips)

You may not received full amount , because in such cases customer may ask for discount .
so entry will be .

Bank A/c Dr
Discount A/c Dr
To Trade Debtors A/c Cr
( amount received ,sale of scrips after discount )

In our Scrips expiry are mentioned, and all are within 10 to 15 months that's why I shown them as current assets 

And is from the date of actual issue by issue or date of sale and i read somewhere that Scrips issued after sep-21 will be valid for only 12 months 

Kindly Guide 

 

 

 

 

 

 

 

You have to confirm with DGFT web site or contact number , any notification/ circular regarding this , , But journal entries will be same as above when you sale scrips.
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