Credit card collection - disclosure - revised sch vi

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2013 Dear All,

We are in the retail industry and allow credit cards swiping against sales made by us. This amount is huge in volume.

Please advise whether we disclose the same as:

a) Trade receivable
b) other current asset or
c) cash and cash equivalent.

CA Kishore Tallam

CA Kishore Tallam (Expert)
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26 June 2013 When u swipe your credit card, i understand that money will be credited on next day in ur bank account.
Since customer has given the money, there is no question of receivable from the customer. Hence, this cannot be disclosed as a "Trade Receivable".
But since u have not realised cash in ur account, it may be appropriate to disclose the same as "Cash in Transit" in Cash and Cash equivalents note.
PS: Give a reference to cash in transit that this amount is receivable on account of credit card transactions.

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