29 October 2008
dear Experts, At first i wish you a happy diwali,
sir i have a query-
1)A Tour Operator( Pvt Co.) who arranges foreign tours receives advances on 1/1/2008 for the tour which will commence on 15/04/2008.The tour operator makes profit out of some commission on Air tickets and also a service charge from customers.he follows accrual system of Accounting.
my specific query is when the tour operator should realise the revenue. is it (a)in the FY 07-08, on the date of receipt or (b) in the FY 08-08 in the year in which the tour actually commences.
CAclubindia
