When to pass journal entry for purchase ??

CA Abhishek Singh (practice) (2080 Points)

26 October 2010  

hello everyone,

our client a pvt ltd company engaged in manufacturing of jewellery business.

following is the detail of goods purchased

date of purchase order 12/12/10

Date of receiving goods 31/03/2010

date of invoice 15/04/2010

Date of receipt of invoice 25/04/2010

My question when should the company pass the entry for purchases. currently the company is passing entry on the date of receipt of invoice from the supplier.

Waiting urgently for ur reply.