friends, ihave a doubt about revenue recognition, whenever we received indirect income(eg.,commission,etc)when will we booked in p&l a/c, at the time of cash recept or occuring?
please reply friends
CA. ANKUR JAIN
(CA.....)
(2800 Points)
Replied 03 March 2009
HI,
IF U R FOLLOWING CASH METHOD THEN IT SHOULD BE RECORDED ON RECEIPT AND IF U R GOIN ON MERCANTILE THEN ON DUE BASIS....................
CA CS VINAYAK PATIL
(CHARTERED ACCOUNTANT)
(921 Points)
Replied 03 March 2009
| Originally posted by :prasanth | ||
| " | friends, ihave a doubt about revenue recognition, whenever we received indirect income(eg.,commission,etc)when will we booked in p&l a/c, at the time of cash recept or occuring? please reply friends |
" |
IT IS CONSIDERED WHEN WE ACTUAL RECEIVED
SNEHASREE
(ARTICLED ASSISTANT)
(102 Points)
Replied 03 March 2009
HI
IT IS ADVISABLE TO FOLLOW MERCHANTILE SYSTEM OF ACCOUNTING (i.e) ON ACCURAL BASIS.SO COMMISSION, INTEREST INCOME SHOULD BE ACCOUNTED ON ACCURAL BASIS.
CA Devanshi Gandhi (Ajani)
(FCA DISA Mcom CIFRS & LLB)
(9058 Points)
Replied 28 March 2009
IF U R FOLLOWING CASH METHOD THEN IT SHOULD BE RECORDED ON RECEIPT BASIS AND IF U R FOLLOWING MERCANTILE THEN ON ACCRUAL BASIS.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
