Accouting entries for the goods value calculated as nil

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Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2013 please tell me the accounting entries for the goods valued as nil.
and their accounting adjustments..

Guest

Guest (Expert)

05 October 2013 Dr P &l ,cr finished goods/inventory a/c with the value recorded for the goods

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2013 mam if u can please explain this.....
if i recorded all the goods as units in tally ....
such as(Tv a/c dr...80 units 5000 p.u 400000
to creditor a/c 400000)
n now it's value is nil.
so how can i do that whatever u wrote as answer.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

06 October 2013 please mention the reason for Nil value

Guest

Guest (Expert)

06 October 2013 generally finsihed products are discarded when obsolete/destroyed.But even in this case you should realise something as scrap value which may well be a nominal amount.
But as you said that you are discarding all goods at nil value,then it should be a revenue loss to be written off in p&l and accordingly your inventory value will be decreased.Lets wait for other experts opinion on the same

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2013 thnks mam but still a doubt....

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