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Transportation Cost

Meet Abhani (IPCC STUDENT) (71 Points)

11 September 2018

Can I Debit my transportation cost to purchase account instead trading account (which may result in material increase in purchase) with reference to AS-2 ( ALL THE cost incurred to BRING INVENTORY TO IT'S PRESENT LOCATION AND CONDITIONS)?

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Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 11 September 2018

Yes you can add carriage inward in respective Items to Get Landed Cost.

And actual stock value inclusive of transportation charges.

AS-2 - Valuation of Inventory, So, Valuation at landed cost and ALL THE cost incurred to BRING INVENTORY TO IT'S PRESENT LOCATION AND Conditions should added to the item or goods you have purchased.