Expiry returns

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2014 For Pharmaceutical Company, while the prepartion of Cost Sheet, whether expiry returns (2-3 years old) which are to be destroyed, should be deducted while calculating the total sales or what other treatment should it be given?

What will be the treatment from accounting point of view?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

17 June 2014 there is 2 different question can be taken , here, return of sales due to expiry will not affect your cost sheet,since it will be happening after sales. only accounting treatment, need to consider as sales return