Question

what is voyage account and how to papered it?​

Answer 1

Answer:

The method of accounting followed by shipping companies is known as voyage accounting. Shipping companies prepare their accounts periodically and also prepare the results of each voyage separately. Shipping companies carry goods from one place to another. Some companies carry pas­sengers also in addition to goods from one place to another place.

In order to ascertain the result of operating a ship’s voyage, Voyage Account is prepared. The Voyage Account is a revenue account. It is important to note that there is no difference in the manner of preparing accounts period-wise and voyage-wise.

All expenses connected with the voyage, such as port charges, wages and salaries of the crew, captain and other staff, transshipment, agency fees, provisions, loading and unloading charges, bunker and harbour wages, freight and insurance, insurance of the ship on a time policy according to duration of voyage, depreciation arising as a result of the journey, address commission paid to bro­kers for freight for the ship, commission to captain on net profit etc. are debited to concerned Voyage Account.

All incomes such as freight on cargo carried, passage money, primate etc. are credited.

Explanation: