Journal Entry and Ledger Posting for Cash payment towards Loading & Unloading Expenses on purchase of goods

Loading and Unloading Expenses are those expenses on purchase of goods, which is paid for loading the goods carrier at Seller's delivery point and unloading the goods at Purchaser's storage place/godown.

Loading and Unloading Expenses related to purchase of Goods are considered as Direct Expenses.

Loading and Unloading Expenses related to sale of Goods are considered as Indirect Expenses.

Let's discuss about Journal Entry and Ledger posting on Loading and Unloading Expenses on Purchase of Goods.

When Cash is paid towards Loading and Unloading Expenses.

The Ledger Accounts affected are :

Debit Account :

• Loading & Unloading Expenses Account

Credit Account :

• Cash Account

Journal Entry

Ledger Posting

In Loading & Unloading Expenses Ledger Account

In Cash Account

Example :

In the Books of M/s.Jagannath Industries goods purchased for ₹3,00,000/- and paid Loading and Unloading Expenses by Cash for ₹1070/- on dt.17/11/2022 to bring the goods to godown.

Pass necessary Journal Entry and Post them into their respective Ledger Accounts for Loading and Unloading Expenses paid.

In the above example 

Debit Ledger is :

• Loading & Unloading Expenses Account

Credit Ledger is :

• Cash Account

Journal Entry

Ledger Posting

In Loading & Unloading Expenses Ledger Account.

In Cash 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