Outward Tansportation Expanses

AS 445 views 1 replies

Hi,

 

Whathar Otward Transportation Expanses, in case of trading firm, is Item of Trading Account Or Profit and Loss Acxcount ?

Answer with REFERENCE to RELEVENT Accounting Standered.

Thanks

Replies (1)

Freight outward is normally incurred in relation to sale of goods & hence treated as selling expenses, The same will be charged off to profit & loss account

As per AS 2 regarding valuation of inventories, any expenses incurred in bringing the inventories to the location of its intended use will be a part of inventory cost & hence will be a part of trading account. Once the goods reached the destination, any expense incurred will be a part of P & L account


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register