Question

journal entry of carriage inward

Answer 1

Journal entry of carriage inward or freight inwards

These expenses should be debited in the trading account because these are generally paid for bringing the goods to the factory or palace of business.However, if any carriage or freight is paid on bringing an asset the amount should be added to the asset account and must not be debited to trading account.

carriage inwards journal entry in case of Revenue expenditure.

Purchase goods from Avinash Rs 20000 and paid carriage Rs 1000.

Journal entry will be:

Purchase A/c Dr 20000

Carriage Inward A/c Dr 1000

To cash A/c 21000

(being goods purchased and carriage paid)

Ledger of carriage inward account

carriage inward account

ParticularAmountParticularAmountTo cash A/c1000By Trading A/c100010001000

 

Carriage inward in Trading A/c

ParticularAmountParticularAmountTo carriage Inward A/c1000

It is shown on the debit side of trading as it is the direct expense for the company.

Note In case of Capital Expense:

Carriage inward is added to the cost.

Example :

Purchase Machinery Rs 100000 and paid Rs 2000 on its carriage.

Journal entry for the same will be:

Machinery A/c 102000

Cash A/c  102000

(being machinery purchased and carriage paid )

Answer 2

carriage inward A/c  Dr 
     To cash A/c 
(being carriage inward charges paid)