Question

ACCOUNTING DOCUMENTS

Required: write a paragraph at lease to answer the following question:

d. Which document transfers responsibility for goods sold to a common carrier?

Answer 1

The document that transfers responsibility for goods sold to a common carrier is called Bill of lading.

What Is a Bill of Lading?

A bill of lading is issued by the common carrier (“the transporters say DHL, FedEx”) to person/entity shipping the goods.

The bill of lading generally contains the following details:

• Type of goods
• Quantity of the goods
• Method of shipment (air/road/rail/marine)
• Details of the seller and buyers
• Date of lading

(The above details will be easier to understand if you look at a sample format of bill of lading on Google)

Process flow of bill of lading in simple terms:

1. The bill of lading is initially signed by the carrier and the seller at the loading dock/sellers premises.
2. After this the responsibility of the goods is transferred to the carrier.
3. This carrier’s responsibility of the goods ends after the delivery of the goods to the buyer.