Journal Entry and Ledger posting for Loading & Unloading Expenses incurred but not yet paid.

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 which are incurred but not yet paid.

When Loading and Unloading Expenses incurred but not yet paid.

The Ledger Accounts affected are :

Debit Account :

Loading & Unloading Expenses Account

Credit Account :

Loading & Unloading Payable Account

Journal Entry

Ledger Posting

In Loading & Unloading Expenses Ledger Account

Outstanding Loading & Unloading Expenses - Posting in Loading & Unloading Expenses Account.

In Loading & Unloading Payable Account.

Example :

In the Books of M/s.Jagannath Industries goods purchased for ₹2,18,000/- on dt.17/12/2022 and Loading and Unloading charges for ₹750/- incurred but not yet paid.

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

In the above example

Debit Ledger is :

Loading & Unloading Expenses Account

Credit Ledger is :

Loading & Unloading Payable Account

(This Ledger Account falls under the main Account Head Outstanding Expenses Account/Expenses Payable Account/Loading & Unloading Expenses Payable Account)

Journal Entry