Expert opion requBired on below mentioned topic.
Pvt Company "A" has paid advance Rs. 10 lacs against supply of Material to Company 'B". Later on it has been decided to supply & bill the material by "B" directly in the name of Company "C". The payment settlement will be made through Journal entries by debit /Credit entries in all. Written consent has been taken .
Do such a transaction appropriate as per Accounting standards/IT laws/company laws?
Please clear the picture.
D'waker
Good Question! I think after getting written consent this transaction is acceptable. What do you think experts?
Regards
Pradip
Good question sir,
I have seen such types of situations in PURCHASE HIGH SEAS SALES, but not in the case of domestic sale yet.
In addition to my query, I would like to know also
What supporting documentation would require, if such transaction is viable?
Do settlement through Debit Note /Credit Note can be done?
Kindly give your valuable comments.
Thanking you
D'waker
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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