My client manufactures certain goods which are delivered to the customers at various sites. Transport Charges are charged to customers by raising debit note separately. This transport faclity is provided by hiring vehicles from outside. Query being how to show transport charges paid and transport charges recovered from customer.
a.Whether to show transport charges net (i.e, Transport charges recovered less trasnport charges paid) or
b.to show these transport charges separately in Profit & Loss Account as transport charges recovered and transport charges paid or
c.shall we clubbed transport charges recovered from customer with Sales Amount since it is directly related to sales.
CAclubindia
