one of our clients have been following a practice of recording purchases at total value of bill which includes all related purchase expenses like labour, commision, stiching of bags, local duties etc.my question is is this practice ok or not and if not how does it affect.pls advice
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Urgent audit query
Replies (7)
There is nothing wrong in recording purchase at Gross value
I think taxes if the credit is obtained should be deducted from Purchases, rest all is ok, as ultimately all the Purchases related expenses forms part of Gross Profit and hence it is ok.
| Originally posted by : Vijay Manwani | ||
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There is nothing wrong in recording purchase at Gross value |
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agree with vijay...
the main point is to show the expense..
and purchase related expenses are the direct expense
so these have the same effect either shown seprately in TRADING A/C or add with the purchase amount.
Nothing wrong at all
current rate of vat in uttar pardesh , monthly challan number and last date of deposite challan and return form with last date of deposite of return
in order to show a true & fair view of financial statements it is advisable to show the direct expenses related to puchase seperately in the trading account, however the treatment given by your client is also not wrong
Can any one tell me What an article is suppose to do on an audit?
Please guide me thoroughly!!!!!!!! Thanx
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