How to record GIT in books of accounts??
Situation:- We received bill of Rs. 100 on 29/03/09, But as on 31/03/09 we received goods worth Rs.50 only balance goods were in transist,below are the two option of recording GIT so which is the appropriate method?
Alternative 1:- To record Debit [Purchase Rs.50, GIT(Under Current Assets) Rs.50] and credit party Rs.100
Alternative 2:- To record Debit [Purchase Rs.100] and Credit Supplier By Rs.100, and to reduce GIT from Closing Stock.