Shivani (Learner) (1881 Points)
09 August 2017Dear Members
If X receives goods from Y on 30 March 2017 but receives invoice on 4-Apr in respect thereof then how will accounting be done in books of both X and Y?
What will be the entries in two financial years involved?
regards
shivani
CA Shivam Arora
(Chartered Accountant)
(2414 Points)
Replied 30 July 2018
Seller- Y will record the sale as soon as risk and reward of ownership passes to buyer, generally as soon as goods are delivered. Thus, he will record it on 30th Mar, 2017.
Buyer-X will have to create an intermediary account "Goods received not invoiced" (GRNI) and pass the following entries-
1) Purchase
To GRNI on 30th Mar, 2017
2) GRNI
To supplier on 4th Apr, 2017
PF & ESI Course - Labour Code 2019 Along with Examples and Case Studies
CAclubindia
