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.

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.

Answer / mozabir

First Entry

Goods in Transit DR
Creditors CR

Purchase A/c DR
Goods in Transit CR

Answer / milan kkg

goods in transit = asset

Answer / mozabir

Goods in transit A/c -------Dr
To, Creditors A/c



Purchase A/c ---------------Dr
To, Goods in transit A/c

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)

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

Answer / mallikarjuna gottam

Goods in transit a/c Dr
To Creditors account

once received goods

Purchases account Dr
To Goods in transit account

Answer / anonymous

Goods in transit a/c dr
To purchases a/c
Or
To trading a/c

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

EXPAND______________ROM

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