Goods In Transit

This query is : Resolved

Mahender Jain (Querist)
Follow

28 October 2009 Our Company Sale 5000 no of bag @100/- each to A Ltd. In which 4000 bag have received to party but 1000 bag still in transit ( i.e. Goods in Transit )

what should be ledger entry of this transacton in Our Books and Where Goods in Transit should be shown in Balance Sheet.

and also where this goods in transit will be shown by A ltd in their balance sheet too

CA Balram Sharma

CA Balram Sharma (Expert)
Follow

28 October 2009 GOODS ARE IN TRANSIT , U HAVEN'T RECEIPT THE GOODS SO U CAN SHOW THESE GOODS AS STOCK IN TRADE.

ENTERY SHOULD BE.

GOODS IN TRANSIT Dr.
TO PARTY A/C (CASH/BANK)as case may be

and you will show these in balance sheet,
if u purchase on credit, liabilties will create and Show creditor,

and goods in transit as an assets,

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
Follow

28 October 2009 Agree with expert.

Upgrade to CAclubindia Pro. Subscribe Now!

Satpal Singh

Satpal Singh (Expert)
Follow

28 October 2009 Agree with Expert

when the sale is made to A. Ltd. and property in goods pass on to the A Ltd. A Ltd. should pass entry

Goods in Transit A/c Dr.
To Party A/c/ Cash A/c

Show Goods in transit in Balance Sheet

For your books sale to A Ltd. is a normal sale transaction and pass the normal sale entry.