Loss by transporter
This query is : Resolved
26 August 2008
suppose we sold material of Rs 1000 to a customer .
on the way there is a theft of material amountin to rs 100 and as per the contract ,transporter has to bear the loss
Now there are two ways
first
Debit the transporter 100 RS
&
Credit the customer 100 RS
second
sale Dr 100 Rs
Customer Cr 100 Rs
and then
transporter Dr 100 Rs
Misc Income Cr 100 RS
Which one approach is correct and why ???
on the way there is a theft of material amountin to rs 100 and as per the contract ,transporter has to bear the loss
Now there are two ways
first
Debit the transporter 100 RS
&
Credit the customer 100 RS
second
sale Dr 100 Rs
Customer Cr 100 Rs
and then
transporter Dr 100 Rs
Misc Income Cr 100 RS
Which one approach is correct and why ???
27 August 2008
Since, the income is recognised as and when the goods are despatched and the contractor is liable to pay for any loss-in-transit, ur first entry is the better one
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