Freight inward is treated as a direct expense related to purchases, while freight outward is an indirect selling expense. If freight charges are recoverable from customers, they should be recorded separately as recoverable expenses rather than direct income.
30 May 2013
Yes. Freight inward is the direct expenses since it involving in purchases and freight outward is the indirect expenses since it is selling overheads
passing the freight to customer based on negotiation with customer
31 May 2013
It is not correct. when you are passing the freight outward to customer, then while incurring the expenses need to debit as Recoverable Expenses under current asset and while passing & collecting same from customer you can credit the same account
CAclubindia
