CIF & FOB

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2011 sir,

plz tell me... what is the difference between FOB & CIR value....??

Is there any difference in accounting entries
or risk taken by buyer and seller

please describe me in detail or refer me the link where i can view this in detail...???

sudhakar ca cwa

sudhakar ca cwa (Expert)
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13 March 2011 FOB - It is seller cost till the Port. risk also upto the port.

CIF - costs and risks upto buyer's destination.

based on the above entries will differ.

main point to consider is Fright.

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2011 sir,

i want full description with entries...!!!

Thanks

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sudhakar ca cwa

sudhakar ca cwa (Expert)
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13 March 2011 give me the instance based on that i can give you the entries for that

Ashok Asthana

Ashok Asthana (Expert)
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25 May 2011 There is no difference in passing entries. FOB and CIF only are two different shipping terms. The liability of the seller remains till payment is received. In case of FOB, freight is paid by the seller upto nearest airport od shipment/port of loading. In case of CIF, cost + insurance +freight upto destination. Either the buyer or seller will bear, depending on the agreement between buyer and seller.