Dear All,
Please advice.
A Company has its ship carrying material to India after purchase from vendor. Now, A company has executed a High-Sea Sale agreement with B Company before the ship enters the Indian shores.
Queries
1. On entering into sale agreement, should A company continue showing the purchased material as Inventory? If yes, how to show it as Goods in Transit/ Raw Material or any other form.
2. Is it not mandatory for A Company to invoice the B Company along with the high sea sale agreement?
3. How B Company will treat the said dealings? In other words, when B Company will record it as purchase in its book?
CAclubindia
