17 April 2010
As it is clear that no formal agreement is signed so it can not be considered as sale. So the money already recd from customer should be dedcuted from the cost or added to sale value :)
17 April 2010
It should be considered as advance received from customer. As the full value of consideration has already been received and the co. also agreed to sell the same to some other party, the whole amount of consideration can not be cancelled. A small part can however be deducted from the amt. recd towards admn. exp. and the balance becomes refundable to the first mentioned party. this amount deducted can be used to reduce the cost at the time of subsequent sale. In accounts, it can be shown as an extraordinary receipt in p/l A/c. Regards, CA Shakuntala Chhangani
CAclubindia
