26 December 2016
U can't show it as abnormal loss. Let us understand it through an example. Suppose a Fruit seller carries fruits for sale from the purchaser to the marker place. Meanwhile some fruits may loose their weight due to exposure to sunlight, result in dryness to the fruit(s). So u see that the weight of the fruits decreases, but the price will remain unchanged (the CP), and this is also unavoidable loss, which u can't stop(coz its natural). This is why that unavoidable loss can't b claimed as abnormal loss, and the amount is not deducted from the purchases or stock, but u may show the loss in the quantity.
CAclubindia
