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what is goods in transit and how to pass an entry


Answer Posted / 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



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