Now a day, every business firm totally depends on well connected communication systems. The postal department plays very important part in this field. Lots of business letters are sent by a business firm through postal department. Letters are sent every where in the world by ordinary post or registered post or speed post through postal department. So many private courier companies have started the business of postage of documents. They are very fast in service and reliable also. All the expenses incurred in connection with postage of the letters and other documents are booked under postage & courier expenses account.

 

Accounting Treatment of Postage & Courier Expenses

a) In case of amount paid in cash or by cheque:-

Type of Voucher to be prepared:- Cash  or bank payment voucher

Entry to be passed

Debit:-  Postage & Courier Expenses A/c

Credit:-  Cash A/c or Bank A/c

b) In case of outstanding Expenses:-

Type of voucher to be prepared:- Journal voucher

Entry to be passed

Debit:-  Postage & Courier Expenses A/c

Credit:- Outstanding Expenses A/c

Or

Expenses Payable A/c

Or

Courier Company’s A/c

Treatment of Postage and Courier Expenses in Final Accounts

Postage expenses are indirect expenses. Therefore, these expenses are shown in expenditure side of profit and loss account. In post offices.

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