Purchase on high seas basis

Bhavesh G Joshi (Partner) (25 Points)

23 April 2013  

PLEASE HELP ME AS TO HOW TO PASS ACCOUNTING ENTRY FOR PURCHASE ON HIGH SEAS BASIS

IS THIS THE CORRECT WAY

VALUE OF HIGH SEAS PURCHASE = 100

VALUE OF IMPORT DUTY PAID = 10

 

PURCHASE ENTRY

PURCHASE IN TRANSIT A/C = 110  DR

SELLER ON HIGH SEAS A/C = 100  CR

IMPORT DUTY PAID A/C = 10 CR