Transport agency accounting entry in purchase &sales entry

Transport agency entry of sales purchase entry please help me

 

Replies (4)
Quick Summary
This discussion clarifies the accounting entries for transport agencies, specifically for purchase and sales transactions. It outlines the standard debit and credit entries for purchases and sales, noting that transport service charges fall under sales. The post also highlights the crucial aspect of Goods Transport Agency (GTA) services, explaining that GST payable under Reverse Charge Mechanism (RCM) by the service recipient requires a specific RCM entry.

1) Purchase entry 

    Purchase A/c Dr 

    To Trade Creditors A/c Cr 

( Narration - Purchases made ) 

 

2) Sales Entry 

    Trade Debtors  A/c Dr 

     To Transport service Charges A/c Cr 

( Narration - Transport service provided) 

Note - Transport  service Charges A/c under Sales A/c .

If GTA ( Goods Transport Agency) who  issue consignment note then GST payable under RCM ( Reverse Charge ) by the recipient of transport services. So receipent will , Pass RCM entry in the books of accounts. 

If Cash purchase then 

Purchase. A/C Dr 

To Cash     A/c Cr 

( Narration - Cash purchase made ) 

 

With reference to my first reply I would like to inform you that , Transport Service Charges Alc (under Sales A/C ) , that you are going to charge to the Customer through Sales Invoice for providing transport service. 

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