Wheather to book purachase or not ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2011 Suppose one party, i.e.individual , imports goods from foreign party and make advance payment for the purchased goods. goods are placed on ship on 25/3/2011 and it will be received by us on 10/4/2011. Risk & property in the goods are transfered to us.
wheather this purchase included or not in the fina yr 2010-11 or not as per AS-9 "REvenue recognition" or AS 9 only apply in for sales ?
pls give reply me?

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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02 July 2011 It shall be recorded in the books of accounts under the head Goods in Transit as per AS 2.

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2011 OK. BUT IF WE NOT SHOWN AS PER ABOVE WAY THEN ANY CONTROVERSY EMERGE OR NOT .

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Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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04 July 2011 It shall not be recorded in the books as purchases because there is no stock with you on March 31. Hence physical verification will not be possible.

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2011 ok but if we not shows this as goods in transit or purchase then its represent wrong bal sheet & P&L

thanks

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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05 July 2011 Yeah..Financial Statements will not reflect true and fair view. Hence it should be shown under Goods in transit.