19 April 2012
Dear Friends, one of my client has sent Diamonds worth Rs.2.50 Crores at Hongkong as sample on consignment basis before 31th March,2012 and these diamonds are to be returned back in April,2012. my question is how to treat this transaction in accounts as on 31.3.2012. what treatment is necessary to record above transaction at the 31.3.2012 ???
19 April 2012
Agree with expert. Since the stock is sent of a sample basis, the property of the stock remains with u only. Hence, it can be shown as inventory as at 31st march.
CAclubindia
