If the goods purchased are in transit , then the journal entry at the end of the period will be ____________________.

Goods-in-transit A/c Dr.
To Supplier's A/c

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Goods-in-transit A/c Dr.
To Purchases A/c

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Good-in-transit A/c Dr.
to Trading A/c

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(b) or (c)

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Solution

The correct option is B Goods-in-transit A/c Dr.
To Purchases A/c
Goods-in-Transit means Material has been dispatched by
Supplier but not received by us this entry is important when
book to be closed on 31st, March
When Goods in Transit (Matching Concept)
Goods-in -Transit A/c --------Dr. (Current Assets)
To Purchase A/c --------- Cr.

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Similar questions

Q. If the goods purchases are in transit, then the journal entry to record will be _______________.

Which of the following will be credited in a journal, if a business purchases goods on credit?

Q. Goods purchased form creditors have been received but omitted to be recorded in accounts. In such a case, which of the following adjustment entry should be passed?

Purchases A/c Dr.
To Creditors A/c

Creditors A/c Dr.
To Purchases A/c

Trading A/c Dr.
To Creditors A/c

Trading A/c Dr.
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Q. A purchased certain goods and sold them to B at a profit of

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%. B sold the goods to C at a loss of

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. The purchase price for A was

If goods are purchased for Rs.450 and one-third is sold at a loss of 10%, what percent of profit should be taken on the remainder so as to gain 20% on the whole transition?

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