Shivani (Learner) (1881 Points)
15 December 2015Dear Friends
If X sells goods to Y and issue following invoice
Sale 10000
VAT 5% 500
Freight 2000
Total 12500
X has to pay freight of Rs. 2000 to Transporter Z for sending goods to Y.
X is recovering the freight amount from Y in Sale invoice.
what will be entries in books of X relating to Y and Z.
regards
CA and CMA Ravinder Singh
(CA and CMA)
(853 Points)
Replied 16 December 2015
CA and CMA Ravinder Singh
(CA and CMA)
(853 Points)
Replied 16 December 2015
Shivani
(Learner)
(1881 Points)
Replied 17 December 2015
Dear Ravinder Sir
Sat Sri Akal
If i go by your entries then balance of Freight Account in books of X will be ZERO.
Should it be ZERO because X is recovering the Freight from Y?
Regards
ish kumar sharma
(Sr. Manager Accounts & Finance)
(301 Points)
Replied 17 December 2015
Yes it should be Zero coz you are just transfereing the amount from one hand to another, nothing left with you.
CAclubindia
