Revised schedule vi

Others 665 views 3 replies

Hello frnds,

As per revised Schedule VI the term “sundry debtors” has been replaced with the term “trade receivables.” ‘Trade receivables’ are defined as dues arising only from goods sold or services rendered in the normal course of business. Hence, amounts due on account of other contractual obligations can no longer be included in the trade receivables.

 

Can some one explain me the term Contractual obligation broadly.

 

Replies (3)

Suppose there are some other incomes which doesn't come in  Trade receivables head ...

then they would be  included in  other current assets  like Rental Income, Interest  etc....

There can be contractual obligation regarding providing of any kind of service or sale of goods. Contractual Obligation arises on account of contract between two or more persons for sale/purchase of any kind of goods or services. So If there is income on account of sale of anything which does not takes place in the normal course of business and even if the parties have entered into a contract for the same then such income should be properly disclosed under the head other income as per the revised schedule vi. Hope it clears your doubt.

can somebody make it clear with some examples??


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