Journal Entry and Ledger Posting for Cash payment towards Carriage Inward Expenses on purchase of goods

Carriage Inward Expenses means the expenses in the Books of Purchaser which are made on Purchase of Goods either Raw Material or Trading Goods for bringing the Goods from Seller's place to Buyer's place/godown.

Let's discuss about the procedure of Journal Entry and Ledger Posting for Carriage Inward Expenses.

When Carriage Inward Expenses are paid through Cash,

Carriage Inward Account shows Debit effect and,

Cash Account shows Credit effect.

Journal Entry

Ledger Posting

In Carriage Inward Account

In Cash Account

Example :

In the Books of M/s.Jagannath Industries goods purchased for ₹3,00,000/- and paid Carriage by Cash for ₹8,900/- on dt.17/11/2022 to bring the goods to godown.

Pass necessary Journal Entry and Post them into their respective Ledger Accounts for Carriage paid.

In the above example

Debit Ledger is :