How to pass entry on 31.3.22

1. fright charges for goods not rec'd before 31.3.22 and probable vehicle charges both payable after 1.4.22
Replies (3)
Quick Summary
This discussion clarifies the correct accounting treatment for freight and vehicle charges that relate to a previous financial year but are paid in the current one. The recommended approach involves passing entries on 31.3.22 to recognise these as 'receivable' under current assets, ensuring they are carried forward. Subsequent entries are then made when payment is received in the new financial year.

For Fright Charge and vehicle charges pass entry on ,31-3-22 as follows

1.Fright Charges receivable A/c Dr
To Fight chrges A/c Cr
( Being fright Charges receivable)

2 . Vehicle Charges receivable A/c Dr
To Vehicle charges A/c Cr
( Being vehicle charges receivable )

Note- Show Fright and vehicle charges receivable under current Assets (others) in balance sheet , same You have to  carry forward to the next year , when you received in the next year pass entry as follows.

Bank A/ Dr
To Fright charges receivable A/c Cr
( Last year income received in the current year)

Similarly when you receive Vehicle charges next year pass similar entry as above.

Please do not consider above incorrect entries done by me , as Fright and vehicle charges are payable not receivable .

Agreed with prasad

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