Please give me accountind entry in case if a firm purchase material from b , & b sent the material to a , & a give advanced payment for material , & material loss in transit
that the time what entry we will pass in a book & insurance calim received after one month from the date of loss in trasit ,
03 February 2009
It depends on the risk of goods who is bearing. If the risk is borne by A, then the A will have to bear loss. He will have to convert advance into losses.
If risk is still with B, then B will be liable to repay the amount to A...
CAclubindia
