Account Entry for Transportation
This query is : Open
23 August 2009
I am a broker between manufacturer & buyer for certain restricted item, wherein the transportation cost is to be borne by me but the Invoice is raised in the name of the Consignee. The transportation charges are payable in CASH only.
Niether the manufacturer, buyer or transporter is ready to enter into a written agreement of any sort.
The commission is paid by the manufacturer through a/c payee cheque.
How should i record transportation cost in my books?
Niether the manufacturer, buyer or transporter is ready to enter into a written agreement of any sort.
The commission is paid by the manufacturer through a/c payee cheque.
How should i record transportation cost in my books?
Deepak Agrawal
(Expert)
24 August 2009
Since the transportation cost is borne by you, it needs to be hit to your P/L A/c as an expenses. Entry passed will be:
TRansporation Chgs A/c... Dr
To Cash A/c
TRansporation Chgs A/c... Dr
To Cash A/c
24 August 2009
As u have mentioned, the invoice (Transportation Charges Invoice, i believe) is raised on consignee's name, u cannot claim the same as ur expenditure.
Therefore, its better to ask the transporter to issue invoice on ur name so that u can properly book that expenditure as urs by passing the entry suggested by Mr Agarwal
Therefore, its better to ask the transporter to issue invoice on ur name so that u can properly book that expenditure as urs by passing the entry suggested by Mr Agarwal
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