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Accounting entries

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Please Could any one explain clearly my question?

1.what is the difference between carriage inwards and frieght charges?

2.What is the difference between carriage outawards and Transportation expenses?

      i have been carrying on audit in an AC enterprises which is a super stockist concern. In part of the year the booked for material unloaded charges as carriage inwards and part of the year as frieght charges.. and the same they do about tranport charges  while selling out or service of AC unit  as carriage outwards and rest as transportation charges...

 

I am waiting here pls post suggestion.... thank u in advance

Replies (1)

1. frieght charges may indirect or direct. i u will pay freight for sale of goods then it will be freight (indirect expenses), but if u will pay freight for raw marerial then it will be direct expenses, called carriage inward.

 

2. carrieage outward is indirect tax and transportation may direct or indiret.

 

in short the real account is carriage inward (direct) and carriage outward (Indirect).. transportation charges account doesn't clear direct or indirect expenses. u should use cariage inward or carriage outward instead of transportation expenses


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