Dear Friends
If X sells goods to Y and issue following invoice
Sale 10000
VAT 5% 500
Freight 2000
Total 12500
X has to pay freight of Rs. 2000 to Transporter Z for sending goods to Y.
X is recovering the freight amount from Y in Sale invoice.
what will be entries in books of X relating to Y and Z.
regards
Dear Ravinder Sir
Sat Sri Akal
If i go by your entries then balance of Freight Account in books of X will be ZERO.
Should it be ZERO because X is recovering the Freight from Y?
Regards
Yes it should be Zero coz you are just transfereing the amount from one hand to another, nothing left with you.
CAclubindia
