High seas sale / purchase entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2012 X Co. is selling Product A 1000 unit @ 50$ to Y Co. through High Seas Sale Agreement in terms of 2% Commission + Rs.6000 Bank charge.

Customs Exchange Rate 1$=Rs.50.00

What will be entries & Value in the books of both X & Y?

Please provide me proper treatment.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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04 September 2012 Both Have to Show Purchase & Sales

In Books of A:-

Bank Charges If Reimbursement Then NIL, Otherwise to be Treated a Income.

& Commission is to be Treated as Part of sales.

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2012 Then what will be the Value of Sale Invoice of X(Not A)?

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CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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04 September 2012 1000*50*50+2% of Total