Journal Correction for Carriage inwards

aldridgesheba
Registered Posts: 16 Dedicated contributor 🌟 🐵 🌟
Hi,
can anyone please help me with the following, carriage costs of £5,144, £2,211 represents carriage inwards on purchases of £82,350. i have to do a journal correction for the carriage inwards on the purchases but i really cannot work out the journal.
Help please!!!:huh:
can anyone please help me with the following, carriage costs of £5,144, £2,211 represents carriage inwards on purchases of £82,350. i have to do a journal correction for the carriage inwards on the purchases but i really cannot work out the journal.
Help please!!!:huh:
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Comments
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Hi there,
Are you with premier training? I'm sure I remember doing this task when I started last year.
Anyway, you need to apportion the amount for p+l purposes. The carriage inwards will make up part of the cost of sales and the carriage outward will be treated as an expense/overhead.
Therefore the journal entry should be:-
Dr Cr
Carriage inwards 2,211
Carriage outwards 2,933
Carriage 5,144
Narrative (example)
Carriage reallocated for final accounts
Hope that helps0 -
This is a bit clearer:-
Dr Carriage in £2,211
Dr Carriage out £2,922
Cr Carriage £51440 -
Hi
Hi,
That is a great help thanx i thought the purchases account came into the journal entries somehow. i am with premier training yes, are you?
Thanks Again
Gemma0 -
Hi again,
So i am guessing that the sales and purchases totals on the trial balance stay the same when moved to ETB?
Thanks0 -
Yup I'm with Premier, just unit 10 to go and then I'm all done.
The purchase and sales figure do not need to be changed in the ETB just carry them over to the profit and loss column.
Hope that helps0 -
that's good, i have only just started the intermediate stage and i'm still doing skills tests for Foundation. Would it be ok to chat to you if i have any more problems?0
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Sure, no worries0
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hiya,
i am a little confused again, the Accumulated depreciation is it is debit? i understand the equipment cost is a debit but unsure of the other. Also i am unsure what amounts go in the Adjustments, accruals and pre-payments columns?
Thanks
gemma0 -
Hi,
Can you help me please?
Thanks0 -
Accumulated depreciation is a credit - it may help to think of it as reducing the 'value' of the fixed assets (which are shown at cost)
Can you explain a bit more about what else you were asking, I think no one has replied because they don't understand your question0 -
if i scan it to my computer and send it to you would that be easier?0
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Be my guest. Feel free to pm me or use my email address in the profile.0