explain voyage in progress
Answers
Answer:
When a voyage is still in process at the conclusion of the fiscal year, it is referred to as a voyage in progress.
Explanation:
What is Voyage Accounting?
In the case of shipping companies, voyage accounting is completed. Accounts for marine business voyages are prepared in order to know their results. It is ready to know whether the shipping company made a profit or a loss on each shipment or voyage it undertook. Even though a maritime company's fiscal year may have ended, a journey may still be in process. This trip is known as an Incomplete Voyage. The matching idea is used to account for incomplete voyages. It indicates a comparison between the current year's expenses and revenues. Therefore, the amount associated with an uncompleted travel must be carried over to the following year.
Thus, a voyage account is created to determine the expedition's profit and loss. All expenses are charged to the trip account while all income is deposited there, comparable to a profit and loss statement.
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