07-21-2006, 05:54 PM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by insaan</i>
<br />Ans no 01then y trade discount is deducted
Ans no 02
ok for contract A/C exactly i got it..
achaa mujhe lagta hai k WIP A/C is just our amount due from customer A/C ,it exactly goes da same way ,cost incurred to +recognised profit - progress billing,means the balance shall be the amount due from/to customer
except 4 da difference dat B/S shows to date figures and contract A/C shows for the yr figures
infact a contract is like a continous sale ...
and then it wont be rite to call this A/C as contract A/C
this shall b WIP A/C
and as per my new teacher contract A/C is a bit different
it is of P/L nature
means we credit it with revenue recognised and debit with profit recognised & cost incurred
& balance is WIP which wud ultimately form part of cost incurred to date in computation of amount
due to / due form customers....
and this is exactly wat i also see in PAC solutions
but 1nce again i dont agree with this treatment
means if we credit contract A/C with revenue recognised wat we wud debit against it
means in case of progress billling it makes sense
Ans no 03
i mean what is the difference between Cost of sales and Cost of goods sold
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Para 27 is my basis. You show reference of IAS for ur basis. Waiting
My basis is that there is no difference b/w WIP n amount due from customer n its not so that WIP is added in amount due from customer to arrive at balance.
It equals in a sense that, suppose
Cost incurred to date is 1,000
Profit recognized is 100
Progress billing 900
Amount due from customer is 200 (1,000+100-900)
Now look 200 is also ur WIP, becoz cost recognized is 800 and total cost is 1,000 (200 being cost for future activities)
Moreover progress billings depicts ur revenue figure in a sense that cost recognized (activities completed) + profit figure.
Now u say
<br />Ans no 01then y trade discount is deducted
Ans no 02
ok for contract A/C exactly i got it..
achaa mujhe lagta hai k WIP A/C is just our amount due from customer A/C ,it exactly goes da same way ,cost incurred to +recognised profit - progress billing,means the balance shall be the amount due from/to customer
except 4 da difference dat B/S shows to date figures and contract A/C shows for the yr figures
infact a contract is like a continous sale ...
and then it wont be rite to call this A/C as contract A/C
this shall b WIP A/C
and as per my new teacher contract A/C is a bit different
it is of P/L nature
means we credit it with revenue recognised and debit with profit recognised & cost incurred
& balance is WIP which wud ultimately form part of cost incurred to date in computation of amount
due to / due form customers....
and this is exactly wat i also see in PAC solutions
but 1nce again i dont agree with this treatment
means if we credit contract A/C with revenue recognised wat we wud debit against it
means in case of progress billling it makes sense
Ans no 03
i mean what is the difference between Cost of sales and Cost of goods sold
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Para 27 is my basis. You show reference of IAS for ur basis. Waiting
My basis is that there is no difference b/w WIP n amount due from customer n its not so that WIP is added in amount due from customer to arrive at balance.
It equals in a sense that, suppose
Cost incurred to date is 1,000
Profit recognized is 100
Progress billing 900
Amount due from customer is 200 (1,000+100-900)
Now look 200 is also ur WIP, becoz cost recognized is 800 and total cost is 1,000 (200 being cost for future activities)
Moreover progress billings depicts ur revenue figure in a sense that cost recognized (activities completed) + profit figure.
Now u say
