Dear Fellow Members
Please clarify some aspects with reference to sale of goods on approval or return basis
1. What would be the accounting entries in Supplier books. (as per IFRS 18 we do not recoginise revenue till material gets approved by customer)
2. what would be the accounting entries in the books of customer
regards
murthy
in the books of supplier,
either maintain memorandum books or prepare sale or return journal for control.
thanks very much. how buyer would maintain records
Hi Srinivasa,
There is no accounting entry either in the books of supplier or the customer. The physical movement of goods until acceptance has to be taken through memorandum accounts only!
Jawahar and Associates Chartered Accountants
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