account concepts....

Question

請問呢條系咩account concepts呀,同埋點解釋呀,差兩條咋,天日交啦,唔該大家

a bookkeepper recorded in the books a large purchase order of $800000 from a reliable customer for delivery 6 months later. The customer's account was debited and the sales account credited. This customer had been doing business with company for 20 years and had previously placed large orders.

Answer 1

你諗下realisation concept, 呢條concept要求你"revenue are recognised when the goods are sold or delivered." 就算你個位顧客同你做左幾耐生意, 買左幾多野, 你一日未送貨比人, 一日都唔可以當成佢係收入, 直至你送左貨先record.

Answer 2

if the said goods still not yet delivered to customer, how you could book this entry:

Dr Customer & CR sales?

it is not allowed for auditing purpose and no professional accountant would do like this.

this is some kind of "window dressing" & leading to a qualified report issued by auditor.