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
CA. Rajesh P. Ahir (In Service @ PSU) (687 Points)
15 September 2010Hi,
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
darpan chheda
(Accounts Manager)
(90 Points)
Replied 15 September 2010
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
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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