27 August 2008
Suppose we sold material worth rs 100 to a customer
During transit there is a loss of 5 Rs material and customer received material only worth 95/- .Now as per the contract with the transporter ,this loss to be recovered from the transporter
Now there are two ways to account it
1) First approach
Transporter Dr 5 & Customer Cr 5
2)Second Approach
Sale Dr 5 RS & Customer Cr 5 Rs
Then
Transporter Dr 5 & Misc Income Cr 5
plz let me know which one approach is correct and why ??
CAclubindia
