anish (Chartered Accountant) (118 Points)
19 May 2008Hii friends,
we have some materials bonded with customes authorities which are pending for customs clearing. Can i include these materials in purchase and can i consider this at the time of stock valuation.All payments are made and only customs clearence is to be done. We can clear this material at any time by paying the required duty. We gave kept it there just because of the lack of space in our godown. So can't i include the same in purchase and closing stock.?
Santosh Mehra
(Articles Student)
(72 Points)
Replied 19 May 2008
Here's the answer for ur query,
Such stocks can be maintained as "goods in transit or customs" & credited to Trading a/c
If such amount already accounted as purchases
Goods in Transit Dr
To Purchases
& if not so
Goods in Transit Dr
To Trading a/c
Santosh Mehra
(Articles Student)
(72 Points)
Replied 19 May 2008
Here's the answer for ur query,
Such stocks can be maintained as "goods in transit or customs" & credited to Trading a/c
If such amount already accounted as purchases
Goods in Transit Dr
To Purchases
& if not so
Goods in Transit Dr
To Trading a/c
anish
(Chartered Accountant)
(118 Points)
Replied 20 May 2008
hi ,
how can we credit goods in transit into trading account. It does not affect profit and loss account. I think it is only a balance sheet item as current asset. So how it comes to trading account.?
CAclubindia
