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Voyage Account is an account prepared by the shipping companies and by those who engage in the business of marine ship. The method of accounting followed by them is known as voyage accounting.

 

Voyage account is similar to a revenue account or a Profit and Loss account; where all the expenses connected with a particular voyage are debited from the respective Voyage account and all the incomes related to that voyage are credited to the Voyage account. Voyage accounting is prepared to know the financial results and to ascertain the profit / Loss of a particular voyage of a marine business undertaken by the shipping company. It records both inward and outward journey.

 

It is very important that separate Voyage account should be prepared for each vessel. Shipping companies prepare separate Voyage account for each vessel periodically. A separate record is maintained for all expenses, charges relating to each voyage and the results of each voyage are prepared separately.