sales recognition

This query is : Resolved

Guest

Guest (Querist)

30 November 2010 my queries is with regard to the issuance of delvery challan and the ensuing implications of AS-9 as under:

suppose X ltd has sent goods along with Delivery challan to Y ltd on 15/01/2010 however actual invoice is sent on 20/01/2010 then on which date the sales will be recognised in the books of X ltd and purchase in the books of Y ltd ??

Surendra

Surendra (Expert)
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30 November 2010 Seller shouldnot recognise the income unless the risks and rewards of the property are transferred to the buyer. Buyer has to acknowledge the receipt of the goods. Buyer has to recognise the purchase on accrual basis.