Diwakar (Manager-Cost Control) (74 Points)
07 June 2010Expert opion requBired on below mentioned topic.
Pvt Company "A" has paid advance Rs. 10 lacs against supply of Material to Company 'B". Later on it has been decided to supply & bill the material by "B" directly in the name of Company "C". The payment settlement will be made through Journal entries by debit /Credit entries in all. Written consent has been taken .
Do such a transaction appropriate as per Accounting standards/IT laws/company laws?
Please clear the picture.
D'waker
Pradip
(Accountant/Management)
(106 Points)
Replied 07 June 2010
Good Question! I think after getting written consent this transaction is acceptable. What do you think experts?
Regards
Pradip
Akhil Gupta
(Manager F&A)
(856 Points)
Replied 07 June 2010
Good question sir,
I have seen such types of situations in PURCHASE HIGH SEAS SALES, but not in the case of domestic sale yet.
Diwakar
(Manager-Cost Control)
(74 Points)
Replied 08 June 2010
In addition to my query, I would like to know also
What supporting documentation would require, if such transaction is viable?
Do settlement through Debit Note /Credit Note can be done?
Kindly give your valuable comments.
Thanking you
D'waker
CAclubindia
