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

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.

We Can still acrue it as an inventory item, since we can still pay for the goods while in transit and receive them in the system, if we have a proof of delivery to freight GNRV. Thanks Julius Barrick Supply Department.