Journal Entry for Expenses on Purchase of Goods

Purchasing process involves a number of steps starting from placing an order and ending with the delivery of goods. Apart from the cost incurred in purchasing the goods, any additional expenses like Carriage, Import Duty, etc is also paid. Any expenses incurred during the purchase of goods will be shown separately unlike an expenditure on assets.

Journal Entry: 

Example 1: Goods purchased worth ₹10,000 and carriage paid ₹500 on it.

Solution: 

Example 2: Goods purchased worth ₹50,000 and paid for import duty ₹1,250.

Solution: