Accounting of material in transit

Mahendra kumar · #1 May 17, 2008, 02:42 AM

kindly tell me how the accounting of material in transit done.
is it add in purchase & closing stock and effects in profit of company .

delite · May 23, 2008, 07:57 PM

generally. goods in transit are not treated as inventoried items. they must be received and title transferred. if you buy abroad and title passes fob in the foreign country or at the ship, for inventory purposes, create a new account for goods in transit as own it.



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