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Where is freight recorded in final accounts?


The freight quote is a document that outlines the specific costs of transporting goods from one place to another. This document is usually prepared by a freight broker or transportation company and it will list the particulars of the shipment, such as weight, dimensions, and final destination. It will also include the cost of transportation and any associated fees.

The freight quote is an important part of the final accounting for a business transaction. It helps to ensure that all costs associated with shipping goods are accounted for and that there are no surprises later on. When preparing your final accounts, be sure to include any information from the freight quote that is relevant to your business.

Freight inward appearing in Trial Balance are shown:

Trading account records manufacturing or direct expenses, freight inwards is the freight paid on goods bought for manufacturing or resale. It is a direct expense and is thus debited to the trading account.

Another answer from:FOB destination

FOB destination means that the sale and transfer of responsibility for the goods occur when the goods have been delivered to the buyer’s designating receiving point (such as a port or warehouse). The seller will record the freight cost as a delivery expense, and it will be debited to the freight-in account and credited to accounts payable.
The seller still legally owns the goods during the shipping process. The title of ownership changes from the seller to the buyer when the goods have been delivered to the buyer’s specified location.

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Another answer from brainly. Explanation:

In the trading account, the direct income and direct expenses are recorded whereas in profit and loss account, indirect expenses and indirect income are recorded.

The trading account gives gross profit or gross loss whereas profit and loss account gives net profit or net loss.

The direct expense is that expense which are used to produce a final product or manufacturing a product.

In the given case, the freight and octroi is a direct expense which should be recorded in the trading account as the tax is levied when the goods are entered in the country. Moreover, it also records sales, purchase, opening, closing stock

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Nikolas White

Logistic, Warehouse and Shipping Services Expert. My work has been published in many different formats across North America with topics ranging from international trade to global logistics or supply chain management–all on the forefront of what’s happening right now!

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