How is the Interest Revenue Component recognized as per AS-9 in p&l for a Hire Purchase sale and an Instalment SalePlease give a live example and exhibit how p&l and Balance sheet figures will be disclosed
sivaram (Asst Mgr-Taxation) (6918 Points)
26 July 2010How is the Interest Revenue Component recognized as per AS-9 in p&l for a Hire Purchase sale and an Instalment SalePlease give a live example and exhibit how p&l and Balance sheet figures will be disclosed
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 26 July 2010
very sorry AS-9 WILL NOT BE APPLICABLE FOR HIRE PURCHASE TRANSACTION
SO PLEASE GIVE EXAMPLE FOR INSTALMENT SALE
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 26 July 2010
Standard Says Revenue of sale price excluding interest should be recognized on the date of sale.
It also says interest should be recognized proprtionately to unpaid balance
can any one explain with simple example so that a lay man like me can understand
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