20 May 2014
sir, I would like to know the cost of purchase of the product. In some bill our creditor add freight charge and other. whether this amount is add to purchase or show separate in p/l. kindly advise the same thank binu
21 May 2014
Dear Binu Whereever the sale is complete at the godown of the seller & he delivers the material to the purchaser as purchasers agent, the freight shall be shown as freight inward. Where the sale is completed at the hands of buyer then the seller charges freight in his bill & in that case the freight is shown by adding it to the purchase figure.
22 May 2014
if you buy goods from supplier . then all exp. incur by you to gent the goods in present condition, all exp will include for valuation of stock of goods. same in purchase cost = purchase price + freight+ cartage+ labour exp if any.
CAclubindia
