Accounting treatment for auction goods

Rawmaterials are imported from outside india. It was not cleared from the port for a long time. The dumerrages payble is more than the value of goods. Then the goods are autioned by the agent and the total consideration adjuested towards his charges . Nothing was received by the Importer. In the same Importer has to pay money for the Goods to the supplier.

How we can create liablity to the supplier in our  Books. I thing with out receiveing the goods inside the factory, we can't treate as purchase.

sugguest the Entry for this a/cing

 


 

Replies (2)

if you are liable to pay supplyer then it is loss to the concern, you have to Raise a credit note on behalf of the supplier, and create liability,

 

 

 u may write

                    purchases a/cdr                                                                                                                                       

                               to supplier

                                        demurrage charges

                                                                        to purchases

                  

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