Mercantile system of accounting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2011 A company has received an invoice on 15.08.11 The invoice date is 03.08.11.
As per mercantile system of accounting at which date this expenditure should be recorded?

CA Navin Jain

CA Navin Jain (Expert)
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16 November 2011 on 15.08.11

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Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2011 But sir then what is the relevance of invoice date?

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Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2011 And one more thing if a CA firm is maintaing the accounts of a company...then practically is it possible that it asks for each & every invoice that on which date you have actually received the invoice?

Rajnish Singh

Rajnish Singh (Expert)
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16 November 2011 agreed with naveen sir, mecantile and cash basis concept is majorly reffered to consideration of all transction which is received or receivable and received also.

where is the matter of invoice date . When will you received the Invoice you will consider the same according to receiving date.

In the case of Vat . You cant forward the bill of previous month to next month as per DVAT Rule.

In this concern Company has to take provision for the same and take credit in the same month and the next month it will be reverse.