Accounting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2013 Dear Friend,
a load of edible oil sent by us in a tanker met with an accident on its way to the customers place.Therefore the goods did not reach the customer. We have raised a claim with owner of the tanker to the extent of invoice value of the goods. The following entry is passed in our books.
Claim receivable(Lorry Owner) DR XXX
TO customer CR XXX.

However The sale was untouched. Is there an entry missing?. If sale is to be credited since the sale was not effected at all, which account has to be debited?

Please Help

Rgds

Hemant Kumar

Hemant Kumar (Expert)
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15 March 2013 At the time of Sale:

1) Party (Customer) Ac. Dr.
TO Sales Ac.

After the Accident:

2) Claims Receivable(Lorry owner)Ac Dr.
To Party (Customer) Ac.

After the claims account received

3) Cash/Bank Ac. Dr.
To Claims Receivable (Lorry owner) Ac.

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