Sales and transport charges
This query is : Resolved
03 August 2015
If X sells goods to Y for 10000 on credit and PAYS Rs. 1000 as carriage to Z (transporter) on behalf of Y.
then what entry will be passed in X and Y books?
Regards
then what entry will be passed in X and Y books?
Regards
03 August 2015
X Books
Y A/c A/c
To Sales
Y A/c
To Bank
Y Books
Purchases A/c
To X A/c ( both Purchase value + transportation)
Y A/c A/c
To Sales
Y A/c
To Bank
Y Books
Purchases A/c
To X A/c ( both Purchase value + transportation)
Message likes :
1 times
03 August 2015
Hi Shivani it is nice see you again....
Required entries will be
Y dr. 10000
To Sales 10000
(being sales)
Y dr. 1000
To cash 1000
(Being transportation charges paid on behalf of Y)
Required entries will be
Y dr. 10000
To Sales 10000
(being sales)
Y dr. 1000
To cash 1000
(Being transportation charges paid on behalf of Y)
03 August 2015
In the book of Y
Purchase A/c dr.10000
To x 10000
Transportation charges dr 1000
To x. 1000
Purchase A/c dr.10000
To x 10000
Transportation charges dr 1000
To x. 1000
03 August 2015
Dear Experts
Why haven't both of you opened Z's Account in X's books.
After all hiring transporter (Z) by X is also a financial transaction in itself.
regards
Why haven't both of you opened Z's Account in X's books.
After all hiring transporter (Z) by X is also a financial transaction in itself.
regards
03 August 2015
Even if you open an account for Z , the account will be nullified with credit and debit
For information sake, you may open an account in the books of "y". with due entry and payment entry.
For information sake, you may open an account in the books of "y". with due entry and payment entry.
03 August 2015
Dear Dileep Sir
Cheque of rs. 1000 is given by X to Z for transport charges.
X intends to recover the transport charges it paid to Z from Y in addition to sales amount.
Please tell me the entries in books of X and Y?
regards
Cheque of rs. 1000 is given by X to Z for transport charges.
X intends to recover the transport charges it paid to Z from Y in addition to sales amount.
Please tell me the entries in books of X and Y?
regards
03 August 2015
Hi Shivani,
I think you doesn't get my point of veiw.
For making entries related to transportation expenses incurred by X ltd on behalf of Y ltd.
In this case for the purpose of msking entries we have two option's in the books if X ltd.
1st Maintain separate account for each customers
Entries will be same as suggested earlier
Y/Z/A/ etc. ltd dr
To cash /bank/transporter
(Beind exp incurred on behalf of y ltd. )
2nd option
To create a pool ledger
Entries will be
Expenses on behalf of custome (Asset a/c) dr.
To cash / Bank/ transporter
And for both option entries related to payment received from customes
Cash / bank A/c dr.
To y/z/a/ expenses on behalf of customes
Hopes now your doubt related to these entries is cleared....
Regards
KumarMukesh
we have two
I think you doesn't get my point of veiw.
For making entries related to transportation expenses incurred by X ltd on behalf of Y ltd.
In this case for the purpose of msking entries we have two option's in the books if X ltd.
1st Maintain separate account for each customers
Entries will be same as suggested earlier
Y/Z/A/ etc. ltd dr
To cash /bank/transporter
(Beind exp incurred on behalf of y ltd. )
2nd option
To create a pool ledger
Entries will be
Expenses on behalf of custome (Asset a/c) dr.
To cash / Bank/ transporter
And for both option entries related to payment received from customes
Cash / bank A/c dr.
To y/z/a/ expenses on behalf of customes
Hopes now your doubt related to these entries is cleared....
Regards
KumarMukesh
we have two
03 August 2015
Expenses incurred on behalf of customer is adjustment/contrilling a/c I.e. whatever we have incurred during a particular period the balance in these account should be Zero, jitna b kharch kia h customer ke behalf pr wo waps aa gya h, and if not reconcilion required to be made....
03 August 2015
And for your final query why we should not open a separate account for transporter, its already discussed in my last to last suggestion....
Its upto to you how you can manage your books of account... You can manage by single account or by n nos of account on your choice ....
Its upto to you how you can manage your books of account... You can manage by single account or by n nos of account on your choice ....
04 August 2015
Dear Mukesh Sir
can u message me ur email id ....
I feel u gave it but I lost it.
I got all confused up with all the forward slashes u put in ur reply :(
can u message me ur email id ....
I feel u gave it but I lost it.
I got all confused up with all the forward slashes u put in ur reply :(
04 August 2015
Don't worry!!!!
Mukeshkumar6610@hotmail.com
Mukeshkumar6610@hotmail.com
05 August 2015
Dear Mukesh Sir
Books of X
Y 10000
To Sales 10000
Z 1000
To Bank 1000
What further entries need to be passed in books of X?
Since carriage outward expenses by X are not relating to X and are incurred by X on behalf of Y, so they cant be debited in X books.
Please provide the remaining entries in books of X.
Also what will be the entries in books of Y?
regards
Books of X
Y 10000
To Sales 10000
Z 1000
To Bank 1000
What further entries need to be passed in books of X?
Since carriage outward expenses by X are not relating to X and are incurred by X on behalf of Y, so they cant be debited in X books.
Please provide the remaining entries in books of X.
Also what will be the entries in books of Y?
regards
05 August 2015
In the books of X
Y a/c dr.
To Cash/bank/ transporter (if not paid in cash)
Transporter a/c dr (if earlier not paid in cash)
To cash/bank
In the books of Y ltd
Transportation/freight exp dr.
To X
X a/c dr
To cash /bank
And if you still not getting my point then you need to chat personally ...
Y a/c dr.
To Cash/bank/ transporter (if not paid in cash)
Transporter a/c dr (if earlier not paid in cash)
To cash/bank
In the books of Y ltd
Transportation/freight exp dr.
To X
X a/c dr
To cash /bank
And if you still not getting my point then you need to chat personally ...
05 August 2015
Dear Mukesh Sir
Please check my entries.
Books of X
Y 10000
To Sales 10000
(Sales made to Y)
Z 1000
To Bank 1000
(Transport expenses paid to Z)
Y 1000
To Z 1000
(Transport expenses to be recovered from Y)
Bank 11000
To Y 11000
(Amount received from Y)
Please check above entries and tell me if they are right?
Books of Y
Purchases 10000
Carriage Inward 1000
To X 11000
(Goods purchased from Y and transportation expenses of 1000 to b paid to X)
X 11000
To Bank 11000
(Payment made to X)
Are above entries right in books of Y?
Also Mukesh Sir, Dileep sir in his entries in book of Y included transport expenses in purchases. Why so?
regards
Please check my entries.
Books of X
Y 10000
To Sales 10000
(Sales made to Y)
Z 1000
To Bank 1000
(Transport expenses paid to Z)
Y 1000
To Z 1000
(Transport expenses to be recovered from Y)
Bank 11000
To Y 11000
(Amount received from Y)
Please check above entries and tell me if they are right?
Books of Y
Purchases 10000
Carriage Inward 1000
To X 11000
(Goods purchased from Y and transportation expenses of 1000 to b paid to X)
X 11000
To Bank 11000
(Payment made to X)
Are above entries right in books of Y?
Also Mukesh Sir, Dileep sir in his entries in book of Y included transport expenses in purchases. Why so?
regards
05 August 2015
Why last books of X made in the name z it should be y ( money will be received from y not z being transporter)
Otherwise all entries were same as I suggested earlier.
And for last query related to transportations exp
Because these expenses are incurred for the purpose of the procurements of Raw Material and if these were related to any fixed asset then the same will be included in cost of fixed asset.
And after all these, I must say one thing you need to just concentrate on basis of accounting rules/principles all entries will be automatically correct ....
Otherwise all entries were same as I suggested earlier.
And for last query related to transportations exp
Because these expenses are incurred for the purpose of the procurements of Raw Material and if these were related to any fixed asset then the same will be included in cost of fixed asset.
And after all these, I must say one thing you need to just concentrate on basis of accounting rules/principles all entries will be automatically correct ....
06 August 2015
dear mukesh sir
In books of X, I have put last entry as
bank debit 11000
to Y 11000
Y hi to kiya hai credit.
daant kyu rahe ho
my basics are weak :(
In books of X, I have put last entry as
bank debit 11000
to Y 11000
Y hi to kiya hai credit.
daant kyu rahe ho
my basics are weak :(
06 August 2015
Sorry!!!
If it hurts you, but that was not intention.
And I thought last entry was made in the name of Z instead of Y.
Anyway you were CORRECT I was Wrong..
And to have basis understanding of accounting entries doesn't require more that 2 minutes, if you willing to understand...
Hopes to see you soon on some other topics...
Thanks
If it hurts you, but that was not intention.
And I thought last entry was made in the name of Z instead of Y.
Anyway you were CORRECT I was Wrong..
And to have basis understanding of accounting entries doesn't require more that 2 minutes, if you willing to understand...
Hopes to see you soon on some other topics...
Thanks
06 August 2015
mukesh sir
one more point
when X will issue Sale invoice to Y, then will X also show transport charges in invoice.
or will this be done by way of debit note i.e will X issue Y a debit note for Rs. 1000.
if X will issue debit note then in books of Y there needs to be two separate entries
one entry of purchase in purchase voucher in tally
second entry of credit note in credit note in tally
tell sir
so many questions keep coming in my mind
regards
one more point
when X will issue Sale invoice to Y, then will X also show transport charges in invoice.
or will this be done by way of debit note i.e will X issue Y a debit note for Rs. 1000.
if X will issue debit note then in books of Y there needs to be two separate entries
one entry of purchase in purchase voucher in tally
second entry of credit note in credit note in tally
tell sir
so many questions keep coming in my mind
regards
06 August 2015
1. If it is included in the invoice value then entries in books of Y
Purchase dr 10000
Transportation exp dr 1000
To X 11000
( being material purchased from x including transportation exp)
2. If not included in invoice value
purchase dr 10000
To x 10000
Transportation exp dr. 1000
To x 1000
( being debit received for transportations exp))
Thanks....
Purchase dr 10000
Transportation exp dr 1000
To X 11000
( being material purchased from x including transportation exp)
2. If not included in invoice value
purchase dr 10000
To x 10000
Transportation exp dr. 1000
To x 1000
( being debit received for transportations exp))
Thanks....
08 August 2015
Dear Mukesh sir
ok I agree with ur entries.
in case one where transport is included in invoice u took purchase debit transportation debit and X credit in Y books to reflect all that's there in an invoice.
But consider same case one in X books.
In X books where he is showing transport charges in invoice then entry in X books will be
Y 11000
To Sales 10000
To Z 1000
Z 1000
To Bank 1000
Bank 11000
To Y 11000
are my above entries correct?
I tried to make entries myself.
I hope they are right :)
Regards
ok I agree with ur entries.
in case one where transport is included in invoice u took purchase debit transportation debit and X credit in Y books to reflect all that's there in an invoice.
But consider same case one in X books.
In X books where he is showing transport charges in invoice then entry in X books will be
Y 11000
To Sales 10000
To Z 1000
Z 1000
To Bank 1000
Bank 11000
To Y 11000
are my above entries correct?
I tried to make entries myself.
I hope they are right :)
Regards
08 August 2015
I need to clarify certain things, we are not in office... Sir sounds me odd... I think I'm younger than you... Just use simple name...
ANd your all entries aree correct, as you....
ANd your all entries aree correct, as you....
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