Home For AAT student members General AAT student discussion

Journal Correction for Carriage inwards

aldridgeshebaaldridgesheba Settling In NicelyRegistered Posts: 16
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:

Comments

  • pensilnekpensilnek Settling In Nicely Registered Posts: 19
    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
  • pensilnekpensilnek Settling In Nicely Registered Posts: 19
    This is a bit clearer:-

    Dr Carriage in £2,211
    Dr Carriage out £2,922
    Cr Carriage £5144
  • aldridgeshebaaldridgesheba Settling In Nicely Registered Posts: 16
    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
  • aldridgeshebaaldridgesheba Settling In Nicely Registered Posts: 16
    Hi again,

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

    Thanks
  • pensilnekpensilnek Settling In Nicely Registered Posts: 19
    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
  • aldridgeshebaaldridgesheba Settling In Nicely Registered Posts: 16
    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?
  • pensilnekpensilnek Settling In Nicely Registered Posts: 19
    Sure, no worries
  • aldridgeshebaaldridgesheba Settling In Nicely Registered Posts: 16
    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
  • aldridgeshebaaldridgesheba Settling In Nicely Registered Posts: 16
    Hi,

    Can you help me please?

    Thanks
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    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
  • aldridgeshebaaldridgesheba Settling In Nicely Registered Posts: 16
    if i scan it to my computer and send it to you would that be easier?
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    Be my guest. Feel free to pm me or use my email address in the profile.
Sign In or Register to comment.