17 February 2010
Dear Sir i want to know the accounting entry of problem given below
problem- we have sent 29.510 mt material sent to consignment agent but out of that 13.155 mt material stolen in transit.(Note - excise duty involved material)
22 February 2010
Dear friends, note the following entries in case of consignment : 1. When the goods are sent on consignment: Consignment A/c Dr. XX To goods sent on consignment A/c XX 2. When exp. incurred by consignor on above : Consignment A/c Dr. XX To Cash / Bank A/c XX 3. When exp. incurred on above by consignee : Consignment A/c Dr. XX To Consignee's A/c XX 4. When goods lost in transit : Goods lost in transit A/c Dr. XX To Consignment A/c XX Since loss in transit in an abnormal loss, it will be credited to consignment account in the same manner as we credit goods lost by fire to trading a/c so as to get normal GP. It will be valued at cost + exp. of consignor (proportionate). Regards, CA Shakuntala Chhangani
23 February 2010
Dear praveen, pls don,t change my gender n use ms. in ur next communication. whatever is the balance in goods sent on consignment a/c, it will be transferred as : Goods sent on consignment A/c Dr. XX To Trading / Purchase A/c XX this entry is always passed at cost. it reduces the amount of inventory. In case u have any further doubt, revert back to me. Regards, CA Shakuntala Chhangani
CAclubindia
