CA rahul (BCOM(H) ACA) (725 Points)
30 August 2011if a company charge excessive price on the sale of exciseable good and on want to reverse the excessive price charge on the request of buyer after a period of one week from the date of sale now what entries to be passed keeping in view AS - 9 provision
praveen
(Chartered Accountant)
(6971 Points)
Replied 30 August 2011
You can pass a credit note and reduce the income receivable. AS 9 says that you have to recognise income when there is no doubt on realisation and collection. In case of any change in the realisation aspect you can always reduce it to that extent.
CAclubindia
