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A Journal Entry

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Querist : Anonymous

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Querist : Anonymous (Querist)
26 February 2010 Plz. anybody tell the Journal Entry for the following Case :-

If a Trader in his Invoice shows the Carriage borne for the Purchaser which is to be reimburshed along with the Cost of Goods ??
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M Prabhakar Menon

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M Prabhakar Menon (Expert)
26 February 2010 If carriage is shown in the invoice it is incorrect. Use of Debit notes for such transaction is advised, as sales tax will have to be charged inclusive of the carriage cost.In the journal entry credit salesA/c with value of the sale;credit transport/carriage ioutwards with transport cost; credit excise duty to cenvat A/c; credit sales tax withamount of sales tax and debit customer with the total amt.
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
26 February 2010 If you are purchaser

Debit: Transportation
Credit: Supplier

If you are Seller

Debit:Customer
Credit: Transport charges receivable
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Querist : Anonymous

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Querist : Anonymous (Querist)
27 February 2010 Thanks both the Experts for their opinions.

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