how to calculate insurance on freight on voyage accounts
Answers
Explanation:
Voyage Account is an account which is prepared by the shipping companies. This account is prepared to get a complete record of the profits earned and loss incurred on the particular voyage undertaken by the shipping company. It records both inward and outward journey. It is prepared separately for each voyage.
Answer:
To know the financial results of a marine business, voyage accounting is prepared. Voyage account is similar to a Profit and Loss account; all expenses are debited to Voyage account and all incomes are credited to Voyage account. Voyage account is prepared to ascertain the profit or Loss of voyage. It covers both inward and outward travelling. It is very important that separate Voyage account should be prepared for each vessel.
Explanation:
To complete matching concept, an income as well as expenses related to the incomplete voyage might be carried forward to the next accounting year on the respective account. Provision for the income earned should be debited from the voyage account and provision for the expenses should also be credited to the voyage account.
Expenses which are related to the freight, need to be carried forward in a proportion to return freight. For example, if total freight is Rs. 2,500,000 out of which return freight is Rs. 1,200,000 and total expenses are Rs. 500,000, then expenses to be carried forward to the next accounting year — will be Rs. 240,000.