when should a payable be recorded ; when goods are received or when invoice. Suppose by last week of the year , i receive goods and in the first week of next year, i receive the invoice , on what date should i record the payable. pls explain with entries and date of entries if possible, that would be helpful,
Also what is this GR/IR account and what is it used for? what category of accounts is that,,,current asset , ? pls help friends and tutors. Thanks
Payable to b recorded when goods are received.
| Originally posted by : RAVIKUMAR | ||
 |
when should a payable be recorded ; when goods are received or when invoice. Suppose by last week of the year , i receive goods and in the first week of next year, i receive the invoice , on what date should i record the payable. pls explain with entries and date of entries if possible, that would be helpful, Also what is this GR/IR account and what is it used for? what category of accounts is that,,,current asset , ? pls help friends and tutors. Thanks |
 |
The payable a/c date always to be mentioned as per Invoice date. As soon as Invoice received, the date of the inoice is to be recorded in the financial accounts.But received of goods has to be recorded in stock books as goods received date.
| Originally posted by : Rama chary | ||
|
|
thanks Mr rama chary , so what will be the entries for recording the goods in the stock books. For example during last week of the year we receive bulk goods, but we dont receive invoice. we get invoice during first week of next yr. in that case we should just update the stock books and record payable only during next year? pls help me as i want to know how this is done in practical accounting in the industry Originally posted by : RAVIKUMAR when should a payable be recorded ; when goods are received or when invoice. Suppose by last week of the year , i receive goods and in the first week of next year, i receive the invoice , on what date should i record the payable. pls explain with entries and date of entries if possible, that would be helpful, Also what is this GR/IR account and what is it used for? what category of accounts is that,,,current asset , ? pls help friends and tutors. Thanks The payable a/c date always to be mentioned as per Invoice date. As soon as Invoice received, the date of the inoice is to be recorded in the financial accounts.But received of goods has to be recorded in stock books as goods received date. |
|
In case of receipt of goods in the earlier year and receipt of supplier invoice in the next year, the following entries should be passed.
1. Purchases A/c Dr
To Outstanding Liability (Date: close of the earlier year)
2. Closing stock records should be updated so that goods received are included in closing stock as at
end of the earlier year.
3. First day of the next year:
Outstanding liability Dr
To Purchases (reversal of closing entry passed in the earlier year)
4. Purchases Dr.
To Supplier (on receipt of actual invoice from supplier).
Please note that these are not scheme of entries passed universally. Each company has its standard method of passing entries but ultimate result is the same. Entries also differ depending on which ERP/ Accounting system a company uses.
CAclubindia
