Journal Entry and Ledger Posting for Loading & Unloading Expenses on purchase of goods, payment through Bank Account

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 Loading and Unloading Expenses are paid through Bank Account.

The Ledger Accounts affected are :

Debit Account :

  • Loading & Unloading Expenses Account

Credit Account :

  • Bank Account

Journal Entry

Journal Entry for Loading and Unloading Expenses, paid through Bank Account.

Ledger Posting

In Loading & Unloading Expenses Ledger Account

Loading and Unloading Expenses, paid through Bank Account - Posting in Loading & Unloading Expenses Ledger Account.
In Bank Account

Loading and Unloading Expenses, paid through Bank Account - Posting in Bank Account.

Example : 

In the Books of M/s.Jagannath Industries goods purchased for ₹4,70,000/- and paid Loading and Unloading Expenses through HDFC Bank Current Account No.7020 for ₹1290/- on dt.25/11/2022 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 :

  • HDFC Bank CA No-7020

Journal Entry

Journal Entry for Loading & Unloading Expenses, paid through Bank Account.

Ledger Posting

In Loading & Unloading Expenses Ledger Account

Loading & Unloading Expenses, paid through Bank Account - Posting In Loading & Unloading Expenses Ledger Account.

In HDFC Bank CA No-7020

Loading & Unloading Expenses, paid through Bank Account - Posting in Bank Ledger Account.

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Location: Cuttack, Odisha, India

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