07 September 2010
Dear all what is the accounting treatment for goods in transit? # can it put in closing stocks? # can it include in purchase ? # can it shown in liability side.
08 September 2010
I understand your query is about GIT for purchases.
If your liability to pay the goods have arisen at the time the goods departed from the supplier's godown then you need to pass the following entry: Purchases Debit. Supplier Credit. Closing stock on both P&L and BS you have to show this as GIT (inward)
If your liability arises only upon supplier delivers the goods at your location, then no entry required as it is not a GIT for you, but a GIT for the supplier.
08 September 2010
dear , why have we stand party , while we have not recd the goods till now, another thing is that what entry shold be passed at a time of goods receving. if you shown above mentioned entry in your books. let us assume .
a exciseable unit take a goods in " goods in transit" he can not take a cenvat credit and not take a such type of goods under there stock.
if you shown this only as a disclosers type than what entry should be passed at a time of goods receiving . at that time what enty you suggest to passed.
CAclubindia
