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
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 )
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