Purchase accounting


T S D ( )     26 November 2012

T S D
 
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The books of accounts are closed on 31st March every year.

An invoice dated 31st March has been received by a company for which goods are received by the company on 4th of April in the subsequent year. The invoice suffer ED and VAT.

What is the accounting procedure?

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V P Narasimhan (Accounts Manager)     14 December 2012

V P Narasimhan
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Normally date of receipt of Materials alone will be considered. If its before 31st you can account since you are going to submit your VAT returns only in next month. Some company use to make even provision entries for these type of transactions.

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MAHENDRA KANTILAL TITA (Account Executive)     17 December 2012

MAHENDRA KANTILAL TITA
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V.P.NARSIMHAN IS ABSLOLUTELY RIGHT.

 

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Sonu Kumar (Account Manager)     19 December 2012

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I thank a entry will be passed on 31 march - 

Goods In Transit Ac- Dr ----

       To Party A/c          Cr ----

 

and After receiving the material on 4th april the entry will be..

    Goods A/c     Dr-----

           To Goods In Transit A/c - Cr --- 

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T S D ( )     25 December 2012

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Thank you Mr sonu, but what about ED and VAT?

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Sonu Kumar (Account Manager)     25 December 2012

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Vat and ED both will be Considered in Previous Year.


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