When should a sale be recorded in books of accounts?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 December 2015
Hi
Please suggest as to when should a sale be recorded in books of account? At the time of receipt of Sale Order, At the time of generation of invoice, or At the time of Delivery.
Please suggest as to when should a sale be recorded in books of account? At the time of receipt of Sale Order, At the time of generation of invoice, or At the time of Delivery.
19 December 2015
Dear
Book sale at the time of delivery of goods if the transit loss is of the buyer otherwise book sale when received by buyer.
If you are a company then
for revenue recording follow AS 19
In the business enterprise when revenue of sale of good should be recognised it is depends up on satisfying following conditions. All these conditions must be satisfied to recognise income in books of accounts.
Seller should have transferred the ownership of goods to purchaser for the consideration or all significant risk & rewards of ownership should have transferred to buyer.
There should not be any kind of uncertainty for collection or receipt of cash, consideration or receivable etc.
Seller does not retain any direct or effective control on such goods transferred.
Book sale at the time of delivery of goods if the transit loss is of the buyer otherwise book sale when received by buyer.
If you are a company then
for revenue recording follow AS 19
In the business enterprise when revenue of sale of good should be recognised it is depends up on satisfying following conditions. All these conditions must be satisfied to recognise income in books of accounts.
Seller should have transferred the ownership of goods to purchaser for the consideration or all significant risk & rewards of ownership should have transferred to buyer.
There should not be any kind of uncertainty for collection or receipt of cash, consideration or receivable etc.
Seller does not retain any direct or effective control on such goods transferred.
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 December 2015
Thanks, this helps me
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