Accounting for export

CA Jainam Shah (Chartered Accountant) (190 Points)

22 March 2014  

Dear Friends,

Please consider following details of an export invoice.

FOB value $ 261840

Freight $ 15810

CFR $ 277020

 

Frieght is recovered by exporter from the party and same is paid by exporter to ocean freight agent.

Now the issue i am facing is on which amount should i book the Sale on FOB or CFR?

 

Also suggest me accounting entries for Export sale and payment to ocean freight agent in this case.

 

Thank you in advance for your suggestions.