Vat entry

Carriage inwards is the shipping and handling costs incurred by a company that is receiving goods from suppliers. The most appropriate accounting treatment of carriage inwards is to include it in the overhead cost pool that is allocated to the goods produced in an accounting period. If this is a minor amount, it could just be charged to expense in the period incurred, with no inclusion in the overhead cost pool. Thus, depending on the accounting treatment, it may first appear in the balance sheet as an asset, and then shift to the cost of goods sold in the income statement as goods are sold.

Entry Will'be Post 

Dr. Purchase (Purchase A/C)                                  - xxx

Dr. Cst ( Tax & duties)                                             -xxx

Dr. Freight/Carrige Inwords ( Expences -Direct/Mfg.) - xxx  

Cr. Sundery Creditor -                                              -xxx