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what is goods in transit and how to pass an entry
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Answer / manish
Goods-in-Trasit means Material has been despatched by
Supplier but not received by us this entry is important when
book to be closed on 31st, March
A when Goods in Transit (Matching Concept)
Goods-in -Transit A/c --------Dr. (Current Assets)
To Party A/c --------- Cr. (Sundry Creditor)
B) When Goods Received
Purchased A/c__________Dr.
To Goods-in-Transit A/c--------- Cr.
| Is This Answer Correct ? | 235 Yes | 31 No |
Answer / hariram
As per the revenue recognition - If the terms is FOB, then
this entry is to be passed. ie. only at the time of Risk
and rewards are transferred to the buyer.
Goods in transit entry is as follows
Goods in transit (Shown under Inventory schedule) A/c Dr
To Party (The liability is not understated)
At the time of receipt of goods
Inventory RM A/c Dr
To Goods in trasit
Net effect is Inventory RM A/c to Party A/c
at the time of consumption the entry is passed as
RM consumption A/c Dr
To Inventory RM.
| Is This Answer Correct ? | 153 Yes | 36 No |
Answer / mozabir
First Entry
Goods in Transit DR
Creditors CR
Purchase A/c DR
Goods in Transit CR
| Is This Answer Correct ? | 112 Yes | 23 No |
Answer / mozabir
Goods in transit A/c -------Dr
To, Creditors A/c
Purchase A/c ---------------Dr
To, Goods in transit A/c
| Is This Answer Correct ? | 29 Yes | 11 No |
Answer / chris
From Seller's books when inventory leaves the warehouse:
Debit Goods-In-Transit (Balance Sheet)
Credit FG Inventory (Balance Sheet)
When customer acknowledges receipt (Delivery Order signed
and dated), record transaction on customer receipt date as
follows:
Debit Account Receivable (Balance Sheet)
Credit Sales (Income Statement)
Debit Cost of Goods Sold (Income Statement)
Credit Goods In Transiot Account (Balance Sheet)
| Is This Answer Correct ? | 14 Yes | 8 No |
Answer / k.v.
Goods in Transit Dr (Current Assets)
Party account Cr (Current Liabilities under creditors group)
After receipt of materials at destination place:
Stores stocks Dr
Goods in transit Cr
| Is This Answer Correct ? | 12 Yes | 7 No |
Answer / mallikarjuna gottam
Goods in transit a/c Dr
To Creditors account
once received goods
Purchases account Dr
To Goods in transit account
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / anonymous
Goods in transit a/c dr
To purchases a/c
Or
To trading a/c
| Is This Answer Correct ? | 6 Yes | 4 No |
Answer / cma ilyas
If purchase is already recorded, but goods are in transist, then the entry will be :
Goods in transit a/c Dr
To Purchase a/c
Goods in transit is shown as a current asset in the balance sheet
When goods are recieved, the entry will be reversed:
Purchase a/c Dr
To Goods in transit a/c
| Is This Answer Correct ? | 2 Yes | 0 No |
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Audit 
