Accounts

This query is : Resolved

Urvashi Saini (Querist)
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12 January 2013 This Query is asked by my sister...

She came with two illustrations in one of which amount of Frieght

is written P/L a/c... and another one have amount of Frieght & duty
written in Trading a/c...

What is the difference between the two???

CA Mehta Ankur N.

CA Mehta Ankur N. (Expert)
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12 January 2013 In this one is outwad freight which is to be shown in p & l account.

Other is inward freight is to be shown in trading account as it relates to purchase & included in direct expense.

CA Harish Suwalka

CA Harish Suwalka (Expert)
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15 January 2013 All expenses towards frieght and cartage up to bringing good to Godown are direct expenses, hence shown in trading a/c
frieght and cartage on good sold i.e. outward freight is an indirect exp, hence shown in p&l

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