ENTRY OF PURCHASE IN OUR A/C BOOKS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2011 DEAR SIR,

WE HAVE PURCHASED RAW MATERIAL ON 18.04.11 FROM RAJASTHAN AND THE BILL HAS BEEN RAISED BY SUPPLIER ON THE SAME DATE. IT HAS BEEN SENT TO AGRA AND DUMPED IN TRANSPORTER'S GODOWN ON MY BEHALF ON 19.04.11. ON 7.5.11 TRANSPORTER HAS SENT THE MATERIAL TO US WHICH WAS RECD BY US ON 08.05.11. ON WHICH DATE WE SHOULD ENTER THE PURCHASE ENTRY IN OUR A/c BOOKS.

sanjeev bhardwaj

sanjeev bhardwaj (Expert)
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09 May 2011 you should book the liabity in your books on the date when the ownership of goods transferred to you. So in this case if the risks and reward of goods has been transferred to you on the date of dispatch then you will book these invoices on 18/04/11. And if the risk transfer at the time of delivery in your godown (as you said in your case "on my behalf') then you will book these invoices on 19/04/2011. In both the cases if the books are closed monthly then you will have to show this amount in 'Inventory in transit' also.