Accounting treatment

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  1. Dear friends,

    I want know the correct nature of expense.

    If we have paid amount to clearing and forwarding agent for import/export, then it should come under carriage inward/outward head or under any other head in p&l?
     
  2. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    for Imports,you are incurring expenditure to get the goods from the place of shipment to the place of your business.
    Hence it is 'carriage inwards' and forms part of Purchases.
    Whereas for exports,you are incurring expenditure to carry the goods from your business place to your customer
    Hence it is 'carriage outwards' and shall be transferred to profit & loss A/c as indirect expenses.
     
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