when entry should be passed?

This query is : Resolved

Guest

Guest (Querist)

11 November 2008 Q 1: When Goods is purchased on 01/04/2008 but received on 03/04/2008,so that on what date purchased should be Record in the books of accounts ?

Q 2: When any expenses Actually incurred in 31/March/ 2008 &paid in15/ May/2008, bill dated 25th July 2008 but Recd in 15/September/2008.(financial year 2008-09& bill Belongs to TDS matter) then when the entry for the TDS & Expenses will be Recognize?

Q 3: When Agreement for Purchase of Vehicle is made on 31st/March/2008 but Delivery Received on 30/04/2008 after the Signature on Balance sheet of BOD,advance paid on 15th March 2008.When it will be Recognize in the Books of Account?

Deepak Agrawal

Deepak Agrawal (Expert)
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12 November 2008 1. It depends on when risk is transferred to us. Mostly it is on delivery. So entry should be passed when goods are recd i.e. 3rd April. In industry, all pass the entry only after goods are recieved i.e when Goods Recd Note (GRN) is prepared.

2. As expense pertains to 31st March 2008, expense entry should be passed ion 31st March 2008. Also TDS should be deducted & paid before 31st may. It is expressly given in IncomeTax act about treatment of TDS on expenses incurred on 31st March.

3.Asset should be recognised from date of registration of car in our name irrespective of payment & purchase.

Deepak Agrawal

Deepak Agrawal (Expert)
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12 November 2008 Let me know if u need something more to know.

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S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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12 November 2008 1) It depend upon the terms of contract. Suppose the contrct is ex supplier's works, then on purchase you have to record (as the risk and ownership gets transferred to you) whether you received the goods or not on that date.
2)Date on which you recognise the expenditure as incurred (as justified by the incurrence)should be the date on which you have to account and therefore ecognise TDS on that date.
3)Date of registration.