Purchased From ABC CO Item.
S.No Item Name Qty Rate Amount
1 Saree 1 2500 2500
2 Shirt 1 2500 2500
I hope this transaction on credit.
Purchases A/C. Debit Rs.5,000
To ABC Company Rs.5,000
Being Shirts & Sarees purchased on credit from ABC Company.
(why Saree & Shirt Account are required in books of accounts? If trading is there for Shirts & Sarees then its okay. But in this case you will get the total value of Shirts & Sarees separately)
Freight Charges payable to EFT Company.
Freight (Inward) Debit Rs. 500
To EFG Company Account Rs,500
Freight charges payable.
when you pay both the parties.
ABC Co A./c. Dr. 5,000
to BankAccount 5,000
Cheque issued to / neft paid to ABC Company.
EFG Co. A/c. Dr. 500
to Bank Account
Cheque issued to / NEFT paid to EFG
I hope the entries are clear. These entries are only with a view of accounting purpose only. No Stock is considered for this.
If you need details please write
From India, Pune
I have a big confusion for purhcase entry in ERP software can you clear my confusion.
We purchase goods from china for resale purpose from ABC CO fro amount 5000 RS. We paid transportation charges 500 to DEF CO.
S.NO ITEM NAME QTY RATE AMOUNT Transportation charges Total Value
1 Shoes 1 2500 2500 250 2750
2 Jacket 1 2500 2500 250 2750
Q.1. How we will pass purhcase entry for above example as we have to pay transporation charges to someone else Co. ?
Q.2. If we add transportation chrges to each item so each item cost will be 2750/- in our closing stock it will be showing for both item 5500/-Rs. if we sale one item out of this.so
Sale ( 1 item Shoe) 4000
Closing stock (2750)
Gross profit 1250/-
Less : Transportation Charges - (500)
Net Profit 750/-
Now my confusion if we add freight charges in purchase and it comes to Debit side so end of the year it will less from Gross profit but this freight charges is already included in inventory cost so it will not be wrong to less this transporation charges again ?
Please sir clear my confusion.
From Qatar , Doha