17 September 2011
Dear Sir, I Have Raised A Sell Bill Amt. Rs. 12,00,000 In The Month Of March 2011. (Sales international Package tour). But Tour service Provided In The Month Of May 2011. After The end Of The F.y. And Co. Also Booked Hotel , Transport And Other services Current F.y. So. In This Case My last Year Profit Is increase By rs. 12 Lac And C.Y. Loss Rs. 12 Lac. Pls Tell Me About Accounting Policy And Procesure
17 September 2011
Accounting Standard 9(ICAI):Revenue Recognition: Proportionate completion method is a method of accounting which recognizes revenue in the statement of profit and loss proportionately with the degree of completion of services under a contract.
According to query entire tour service provided in the subsequent Financial Year therefore to provision is to be made during Current Financial Year for the entire amount.
CAclubindia
