Freight

Entry for what transactions? for sales with freight receivable or for freight charges payable?

1) Normally Fright outwards Grouped under Indirect expenses. 

a)  Fright outwards  Dr    80   -

    To Bank  A/c       Cr    -     80

( When you incurred Expenses )

b) Sundry Debitor    Dr     100     -

    To Fright Outwards Cr     -     100

  ( While invoice raising )

IF you collect 20% Excess from all of your customer your FO ledger show Credit balance.

Sales with Freight Receivable

Currently my P&L shows Freight Outward as Huge Negative Balance under Indirect Expense

If so, please group that under indirect income (not exps)

The Scenario is Freight Charges Included in the Sales Invoice, which I raise

The Same Freight charges will be paid to my freight contractor.

Hence

will this freight outwards will be shown at Indirect Exp or Indirect Income or 

else this Freight charges ledger should be zero by tallying against the freight contractor