Ankit (C.A.-Student) 19 August 2015
A person is engaged in trading in goods where he is charging freight/courier charges for delivery of goods from customers in advance on notional basis. Amount received can be either excess or short as compared to actual freight charges which result in income or expense on individual bill wise. However there is possibility that at the end of financial year there will be expenses (Debit balance of Ledger)
My Query is
Thanks in advance
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V P Narasimhan (Accounts Manager) 15 September 2015
You can Credit ethe Expense and net the Ledger Balance. Other wise what has to be done either you have to open an a/c viz., Freight Recd under Misc Income and show seperately. Instead its better to square off in the Expense itself. The net result is the same.