Journal Entry and Ledger posting for Carriage Inward Expenses incurred but not yet paid.

Carriage Inward Expenses incurred but not yet paid means Expenses raised and posted in Ledger Accounts and Financial Statements in the form of Credit transaction.

It is also called Outstanding Expense.

In this transaction,

Carriage Inward Account shows Debit effect, and

Carriage Inward Payable Account shows Credit effect.

Journal Entry

Ledger Posting 

In Carriage Inward Account

In Carriage Inward Payable Account.

Example :

In the Books of M/s.Jagannath Industries goods purchased for ₹2,18,000/- on dt.17/12/2022 and Invoice No.21205 raised by Odisha Transport Agency for ₹11,650/- towards carrying the Goods.

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

In the above example 

Debit Ledger is :

• Carriage Inward Account

Credit Ledger is :

• Odisha Transport Agency Account 

(This Ledger Account falls under the main Account Head Outstanding Expenses Account/Expenses Payable Account/Carriage Inward Payable Account)

Journal Entry

Ledger Posting

In Carriage Inward Account

In Odisha Transport Agency Account

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Related Articles :

Types of Account

Double Entry System of Book Keeping

Journal 

Ledger 

Trial Balance

Trading and Profit & Loss Account

Balance Sheet

Bank Reconciliation Statement