16 August 2020
On what date is the import bill accounted in books? Is it to be accounted on the date of commercial invoice/ date of bill of lading/ date of bill of entry and accordingly which exchange rate to be recorded? No advance payment has been made against the same. Capital item is purchased and CIF Contract was there
In my case, the date of commercial invoice falls in one accounting year and the date of bill of entry falls in another accounting year? In which year do I account for the capital item purchased?
17 August 2020
You have to account for the invoice on the date on which you actually received the material at your place of business. Date of invoice or bill of entry is not the reference date for accounting. If there is difference of the accounting year in the date of bill of entry and date of receipt of goods then these are to be shown as goods in transit on 31st March.
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