Accounting for export

Dear Friends,

Please consider following details of an export invoice.

FOB value $ 261840

Freight $ 15810

CFR $ 277020

 

Frieght is recovered by exporter from the party and same is paid by exporter to ocean freight agent.

Now the issue i am facing is on which amount should i book the Sale on FOB or CFR?

 

Also suggest me accounting entries for Export sale and payment to ocean freight agent in this case.

 

Thank you in advance for your suggestions.

Replies (2)

You are talking about Export Sale. In the regard make the invoices as per your PO basis otherwise you have to face the various observations regarding Export Invoices. Further any query plz forward the same.  

You should book the sale on FOB value (convert it in to INR as per exchange rate as on Invoice Date)

1) Customer A/c Dr

       To Export Sale  A/c

       To Frieght Account 

2)  when freight amount received from customer

Bank A/c Dr

To Customer account

 

3) When amount paid to C & F Agent

Freight A/c Dr 

To Bank A/c 

 

Please note that the exchange rate difference should be accounted seperatly in Income / Loss account.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details