Journal Correction for Carriage inwards

aldridgesheba

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:

pensilnek

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 helps

pensilnek

This is a bit clearer:-

Dr Carriage in £2,211
Dr Carriage out £2,922
Cr Carriage £5144

aldridgesheba

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

Gemma

aldridgesheba

Hi again,

So i am guessing that the sales and purchases totals on the trial balance stay the same when moved to ETB?

Thanks

pensilnek

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 helps

aldridgesheba

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?

pensilnek

Sure, no worries

aldridgesheba

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

gemma

aldridgesheba

Hi,

Can you help me please?

Thanks

Bluewednesday

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 question

aldridgesheba

if i scan it to my computer and send it to you would that be easier?

Bluewednesday

Be my guest. Feel free to pm me or use my email address in the profile.