Theft by transporter
This query is : Resolved
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 ??
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 ??
CA. Mahesh Agarwal
(Expert)
27 August 2008
First approach is correct as we can not debit the sale account
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- TDS on purchase of under construction property from a reseller
- GST Intimation due to Government took possession of Business Premises under PPE Act
- Non filing of I T Returns
- TDS on Fixed Assets purchased
- SALARY CAN BE CAPITALIZE
- GST on Renting godown to KFCSC for Storage of Raagi
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
