V urgent

I m doing audit in advertising co. my query is;

if company sales its hoarding on inv dated :15.3.11  for the period of 30 days then in such case 15 days fall in fy2010-11 and next 15 days fall in next year ie. fy2011-12 in that case we should make the provision sale of 15 days hoading in next  year ie.2011-12.

and the same case with purchase.

bcoz above both the case infulence profit of the company.

please reply.

Replies (1)

You have to make provision for the same as period of that income pertains to FY 2011-12.

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