Revenue recognition for a transport co.

Hi, Guys..

This is Chandrakant Mundra, working BHN Ltd a transport co in Nigeria.

I have an issue booking sale in month end. BHN process of booking sale is when we complete sale ie deliver goods to destination, then we book as sale.

We need to pay drivers many exp like Road exp, Diesel, etc begining of sale, so we need to book at the same time.

But what is happening we initiate a sale on say last day of month and it complete on say 7th day of next month. So if we follow revenu reconition then we requierd to book it on next month but exp related to that sale/trip we have to book on last month. So wew are not able to book profit in the same month in which we incured exp. So it is not showing correct profit in any month.

Please advise me How shall we book sale and exp to arrive at correct profit for month. Please substantiate your answer with appropriate examples, if possible.

Please revert if you need any further explanations in this respect.

Thanks.

CA Chandrakant Mundra