05 October 2013
we have received an order from company of Rs. 62 lacs and made purchase against it of Rs. 45 Lacs.now the buyer refuse to take the good and ready to pay Rs. 40 lac for not lifting the goods.but the good is ready and lying in stock. so what should be the accounting treatment for receiving payment of Rs 45 Lac under which head it should be credited..and if the goods sold as scrap by us in very low value say Rs. 5 lacs so what should be the treatment of Loss.
06 October 2013
You have already Incurred the expenses of Rs.45 lakhs against the contract and the same will be compensated by the buyer of Rs.40 lakhs against your purchase and you have scrap sale value of Rs5 lakhs against the un sold stock. so you can adjust the amount received of Rs.40 lakhs as against loss.
CAclubindia
