Date of Purchase bill

Devendra (Chartered Accountant) (4775 Points)

23 February 2011  

Dear CCI Members,

 

M/s XYZ Pvt. Ltd. receives the purchase bill dated 21.08.10 but the purchase entry is passed on 31.10.10. The accountant explains that they record the bill once the payment is made. Is this method correct? If not, then what is he correct method? Please explain.

 

 

Thank You,

Regards, 

Devendra Kulkarni