Question

cartage paid in journal entry

Answer 1

The journal entry for the following question is →

Cartage A/c Dr. (Amount)
To Cash A/c. (Amount)

(Being cartage paid) ..

Answer 2

Cartage A/c Debit (Increase in cost)  

To Sales A/c (Increase in Income)  

Explanation:

Cartage is an income use for the business. But, when it is paid by the client, we are not settling it out of our pocket, fairly stacked with the expense of the item and is earned alongside the salary from deals made to that particular client.  

So, the section will be  

Cartage A/c Debit (Increase in cost)  

To Sales A/c (Increase in Income)  

Afterwards, no more section will be passed against this cartage cost as the client pays this sum straightforwardly to that cartage work force. Deals A/c will be credited to Cash A/c (or) Customer A/c just up to the degree of money (to be) got from the client in regard of the item.

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