Revised schedule vi confusion

Page no : 2

GUNASEKARAN C CA-FINAL (Working in a Private co.) (62 Points)
Replied 13 July 2012

I agree with ankit

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 13 July 2012

@ Ankit if debtors bal goes -ve due to advance then should be classified under -Trade receivables other than outstanding for 6 months....pls clarify

yogesh sharma (CA Student) (268 Points)
Replied 13 July 2012

Trade Receivable outstanding even after end of 12 months from reporting date or o/s beyond operating cycle

(including trade receivables on deferred credit terms);

are treated as long term i.e Non Current, and which are to realised with in operating cycle or within 12 months are treated as current.

Both of these are to Sub Classified as:

Secured Considered Good

Unsecured Considered Good

Doubtful

Such Sub Classification depends on the Credit Policies of a Concern.

yogesh sharma (CA Student) (268 Points)
Replied 13 July 2012

Hi Saurabh

Such Advance wold be treated as income received in advance under the head other Current liabilities

Arka Bose (None) (313 Points)
Replied 13 July 2012

According to my view the normal trade receeivables which are even outstanding more more than 12 months,shouldnt be recognised as long term trade receivable as if u look substance over form,the intention was to pay the due in the normal operating cycle.
I dont think trade receivables should be classified into that.
however,I wanted your opinion,seems like some have differed and mostly agreed with my point.
Good thing i have students convention tomorrow and will be asking this out.

Arka Bose (None) (313 Points)
Replied 13 July 2012

And the long term trade receivable has a pre agreement that the debtors will pay after 12 months.
so there is a difference

Ankit CA and CS (Manager - Accounts) (204 Points)
Replied 13 July 2012

Hi Saurabh

Debtors with credit balances are clubbed under Trade Creditors.... this is a normal industry practice...

yogesh sharma (CA Student) (268 Points)
Replied 13 July 2012

Mr. X sell goods to Mr. Y in An Agreement That Mr. Y would Pay After 12 months in that case Mr. Y would be treated as Long term Trade Receivable.

Normally Operating Cycle is of 12 months

Ankit CA and CS (Manager - Accounts) (204 Points)
Replied 13 July 2012

Hi Yogesh,

At Balance sheet date see whether the same is realisable in next one year, if yes then current other wise non current.

Its the balance sheet date considering which judgement has to be done..

yogesh sharma (CA Student) (268 Points)
Replied 13 July 2012

Hi Ankit

Agree with you

Arka Bose (None) (313 Points)
Replied 13 July 2012

my confusion was if a debtor is overdue for say 18 months,even though his allowed credit period was say 2 months,then where shall i show it? current or non current.
i would still say current,even though i want your opinion

Ankit CA and CS (Manager - Accounts) (204 Points)
Replied 13 July 2012

Arka,

Again, u hv to see on balance sheet date... if management is of the view that they will reover it within next 1 year den current, or they show proof that it will be recoverd next yearr then non current otherwise create provision...

It dosnt matter it is outstanding for 18 months.. u have to see on balance sheet date wats its retrospective position...