T S D ( ) (236 Points)
26 November 2012The books of accounts are closed on 31st March every year.
An invoice dated 31st March has been received by a company for which goods are received by the company on 4th of April in the subsequent year. The invoice suffer ED and VAT.
What is the accounting procedure?
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 14 December 2012
Normally date of receipt of Materials alone will be considered. If its before 31st you can account since you are going to submit your VAT returns only in next month. Some company use to make even provision entries for these type of transactions.
MAHENDRA KANTILAL TITA
(Account Executive)
(131 Points)
Replied 17 December 2012
V.P.NARSIMHAN IS ABSLOLUTELY RIGHT.
Sonu Kumar
(Account Manager)
(665 Points)
Replied 19 December 2012
I thank a entry will be passed on 31 march -
Goods In Transit Ac- Dr ----
To Party A/c Cr ----
and After receiving the material on 4th april the entry will be..
Goods A/c Dr-----
To Goods In Transit A/c - Cr ---
Sonu Kumar
(Account Manager)
(665 Points)
Replied 25 December 2012
CAclubindia
