Goods in transit in CIF basis

This discussion clarifies accounting entries for goods imported on a CIF basis. It explains that for FY 20-21, no purchase entry is made as the goods were still in transit. The purchase is booked in FY 21-22 upon actual receipt and possession of the goods. The concept of 'goods in transit' is primarily relevant for sales, not purchases, as a purchase is only recognised when risk and reward transfer to the buyer.