Accounts Receivable

The Hindu Business Line  Apr 12  Comment 
Also pitch for GST exemption on sale of repossessed assets
The Economic Times  Apr 10  Comment 
Sellers are scrambling to protect the value of their receivables after the INR’s unexpected rally against the world’s reserve currency affected their sales.
The Economic Times  Apr 10  Comment 
'Kushal Trade Link has shown a sudden steep spurt in trading revenues with almost 10-fold jump in receivables and trade payables as of September 30, 2016.'
The Economic Times  Mar 16  Comment 
Pools backed by microfinance (MFI) receivables are under stress and being closely monitored, while those backed by home loans have remained unaffected.
The Economic Times  Feb 6  Comment 
The SBA, under which fertilizer companies can take loans against subsidy receivables, would help the industry meet its fund requirements till the time the cash subsidy is released by the Finance Ministry.
Reuters  Jan 16  Comment 
* Dealnet closes acquisition of $29 million consumer finance receivable portfolio Source text for Eikon: Further company coverage:
The Hindu Business Line  Jan 12  Comment 
Bharat Financial Inclusion has informed the exchanges that it has assigned a pool of receivables for an aggregate value of ₹313.78 crore to one of the largest public sector banks on direct assignment...
Reuters  Dec 23  Comment 
* Total consideration for portfolio to consist of cash payment on closing of $22.5 million, issuance of 12.5 million shares valued at $6.7 million
The Hindu Business Line  Dec 8  Comment 
Dynavision has informed the BSE that according to the lease agreement dated May 04, 2012, entered with Apollo Hospitals Enterprise, the lease rent receivable stands increased to ₹44.369 lakh a month ...


Accounts receivable are money owed to a business by its customers from goods or services sold that have not yet been paid for.

Accounts receivable (alternately "receivables") are created when a customer purchases goods or services from a company but does not pay for them at the time of purchase. Instead, the company issues an invoice for the goods or services at a later date, often at the end of the month. The amount due on the invoice is considered accounts receivable for the company. Receivables are treated as current assets on a company's balance sheet. Receivables are entered into a company's books when they receive an invoice for a good or service provision (and not before), as the invoice proves that money is legally owed to the company by an outside entity.

Receivables are typically issued by companies to reliable customers, since they are selling their goods on credit.


A car dealer buys five cars from Ford Motors but does not pay for the cars at the time of purchase. When Ford issues an invoice to the buyer, Ford also creates an accounts receivable entry on its balance sheet. The accounts receivable are settled once the dealer pays Ford in full for the cars.

For the car dealer, the invoice represents accounts payable, or money they have to pay to another company for already purchased goods or services. When the dealer pays Ford Motors, Ford then converts its accounts receivable to cash on its balance sheet.

Entry at the Time of Issue Invoice:

Car Dealer A/c Dr.

  To Sales A/c Cr.
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