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Good afternoon, Sir.
Sir, in the receipt of invoice stage from the supplier do we only record the trade payables after the receipt of invoice or prior to it. In my knowledge, the purchases may be recorded when the goods are received in the statement of profit or loss since the statement is prepared based on accrual concept.
However, in order to record the trade payables, we would need to wait for the invoice to be sent by the supplier, right? Could you please tell me whether I am right or wrong on this understanding? therefore, I could also take decisions based on confirmation of cut-off assertions.For a tutor response, please use the tutor forum rather than this student forum.
The recipient of goods gives rise to a liability, but it is recorded on processing of the purchase invoice.
So at the y/e you need a “goods received not invoiced” accrual to record the purchase/liability.
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