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Accounting Entry for Goods in Transit

Accounting Entries 43628 views 9 replies

Dear All,

"X' company has prepared commercial and excise invoice on 30.10.2009 for export consignment and bill of lading will be prepared, 10-15 days later from the date of invoice. In this case, "X" company needs to show goods in transit till the preparation of bill of lading and sales will be booked on the date of bill of lading, what will be accounting entry in this case and what is the correct method of accounting goods in transit?

Thanks & Regards,

S. Desai

Replies (9)

when excise bill issued entery will made in Book at same time and stock will reduce.

 

this is the JV

Goods in Transit  A/c Dr

  To Closing Stock A/c

 

Agreed till the bill of lading is not recieved the entry for sales can not passed in books.  

Hi

I am also agree that bill of entry should be final date, but some expert says another thing, what will be the date is still debatable, if any one can guide it will be benificial, but in my view since all risk is transferred when final custom clearance made hence date of entry shall be last date

BL is not the criteria for recording of accounting entry and export sales shall be deemed to be completed at the point when goods are delivered to transporter and loaded in containers, ARE is signed by the company and excise / custom authorities. Issuance of BL may be even after one month and that is not the sole criteria for recording goods in transit rather it is export sales.

 


 

if u want to pass the enty it will be 

Goods in transit ac      dr          0000

  to cost of goods sold                        0000

Entry: 

Goods in Transit Dr

  To Closing stock of Goods in Transit

(Goods in transit would be grouped in CA

Closing stock  of Goods in transit should be grouped in P&L Exp)

Originally posted by : S. M. Desai
Dear All,
"X' company has prepared commercial and excise invoice on 30.10.2009 for export consignment and bill of lading will be prepared, 10-15 days later from the date of invoice. In this case, "X" company needs to show goods in transit till the preparation of bill of lading and sales will be booked on the date of bill of lading, what will be accounting entry in this case and what is the correct method of accounting goods in transit?
Thanks & Regards,
S. Desai

under excise supervision when eport invoice and ARE1 is issued, the sales is booked, 

passage upto the port of export may be time taking, but sales is booked in excise records, and bill of landing is actual date of export.

in excise returns the sale is to be considered on date of excise clearence from factory, and usually u have to book export sales on the same date, however if u book export sales in commercial accounting then make a note in narration with reference date and ARE1 sl no.

Goods in transit does not considered in this case unless the books are closed for the accounting year, and usually if such things happens at end of year, then the seller try to book the export sales in the year of clearence from factory only, 

 

 

 

Hello, I have received goods in April 2021 against March purchase bill and the gst input also received in March-21, Please suggest the accounting entry in books for claim the input in same year, (Purchase in transit, stock in transit, etc)


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