Revised schedule vi

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ANJALI NEGI

Chartered Accountant

771 Points Posted on 13 October 2012

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)

RENU SINGH

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9989 Points Posted on 13 October 2012

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....

CA Vasiullah (Vasi)

Audit Executive

1541 Points Posted on 13 October 2012

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.