Purchase bill Entry

i think both of them are equally acceptable.......... allowed in acts........

I have checked most of the bills under purchase audit of ltd.,company.so I want to say that accounting entries made on the basis of invoice date, not MRN  date,

1. most  cases credit period will be counted from the date of  invoice.,not MRN date.
2. Expenditure incurred on the date of invoice which related to previous year ,not following year.

  regards

  vineet sharma

Purchase is to be entered at invoice date i.e. 31-03-2010. and one can maintain its inventory on the basis of actual receiving date i.e. MRN date to know the stock availability.

hello dear,

U should use Invoice Date instead of MRN date or GRN date :) that will be correct treatment :)

I think purchase entry should be booked on the invoice date itself and not on MRN date as per normal accounting practice...

if it is bill of local party i.e. with in state it is required to enter in same quarter i.e. qtr-4 (jan-mar) on 31.03 because when we file refund of vat then department will cross tally vat of both parties quarter wise... if bill is of an interstate party it will be entered in receipt date because some times it is not possible to receive material on same day from party due to long distance. and another thing cst is not refundable.... and according to income tax rules it is allowable to enter in April because material is received in April..

(1) To my best, Once the Material received at Godowns the Stock keeper received MRN. After that the supplier raised Invoice (it means sale to him) and the same has been received by the Accounts ppl along with MRN copy. So in the normal accounting style we booked as per Invoice and also it to be reconciled with the Suppliers Account .

(2) For Income Tax purpose, the dept will not consider the prior period expenses or post period expenses during assessment of that year.  They prefered Invoices only not MRN., and in the VAT concern also Sale Bills / Purchases Invoices will be attached to the VAT Return not MRN. 

regards

mohan

Hello Santhosh,

It depends on the liability arises on the company this mainly depends on the contract between the paries

if suppose as per our terms liabilty as arises only when we received material at our factory then,

we are not  received material as on 31.03.2010,then there is no liability arises as on 31.03.2010 so we should book the entry on MRN Date, if you enter on invoice date i.e 31.03.2010 the quantity received in the books not matched with stocks availaible on the godown as on 31.03.2010.

otherwise if liabilty arises as on 31.03.2010 itself then you should enter on the invoce date itself and then we should shown regarding stocks in books as stocks in transit A/C

U should use Invoice Date instead of MRN date

As per the normal industry practice, Purchase are booked on the basis of invoice date. but as you know closing stock is taken on the basis of physical verification of stock. in u r a additional Discoluser as to be make that is called 'Stock in transist' that was the ans to u r for accounting treatment. as per sale tax working u can claim credit on the basis of invioce date. so u can claim credit in sale tax