Dear Friends,
I have paid freight for repair & maintenance of machinery (Noida to delhi for repair).
pls. clear which should be debited freight inward exp. or repair & maintenance because as per my concept freight inward for purchase of material which is the part of trading business.
Amit srivastava
It should not form part of Freight Inwards, as per AS-2 and Cost Accounting Stds, Freight Iwd is such an expense which is direct and necessary for bringing the materials to the production premises. Here the expenses is incurred on behalf of machinery which is indirect to production hence it should not for part of Freight Inward.
Hi Hareesh,
Thanks to give me a valuable knowledge as per As & cost accounting standard but as indirect exp. which head we can take freight exp.
It can be booked under 'indirect freight expenses'.. and the cost centre can be that concerned machinery..
dat accounting head was just a suggestion.. better appropriate heads cn also be sought.
Hi Hareesh,
Thank you.
CAclubindia
