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Booking of sale in case of Export

1085 views 3 replies

Harish Bhootra

Service

76 Points Joined April 2008

We had sold the goods to party A of USA on 1.09.2010, but goods was first sent to Belgium for Some testing to some Technical institute from their they had beenshiped the good to party A of USA on 11.09.2010. This testing is done on our behalf. In this case when we will Book the sale in our books.

Replies (3)

ADITI MALIK

article assistance

78 Points Joined March 2010

sale dt wil be on 01.09.10

C.A. LINESH PATIL

910 Points Joined January 2009

As per AS 9 sale should be booked when all the risk and reward related to goods are transferred to the buyer. and there is a surety of ultimate collection.

so its depends on case to case.so you must have checked the situation of your case.then accordingly book the revenue.but till the risk and reward are not transferred ,revenue should not be booked.

if in your case risk and reward of goods are transferred as on 1.09.10 then revenue must be booked as on 1.09.10.otherwise booked when risk and reward will be transferred.