Journal entry for stock loss.
This query is : Resolved
22 December 2019
Dear Sir,
As per books value of stock is Rs.2 Lakh but physically we have no stock, in our production process material is burn and its invisuable loss since FY-2006 to FY-18-19 we have not passed burning loss entries in our books now we want to passed JV in fy-19-20 so please tell me how to pass journal entries. In accounting software ( Tally ) we maintain only account not inventory.
As per books value of stock is Rs.2 Lakh but physically we have no stock, in our production process material is burn and its invisuable loss since FY-2006 to FY-18-19 we have not passed burning loss entries in our books now we want to passed JV in fy-19-20 so please tell me how to pass journal entries. In accounting software ( Tally ) we maintain only account not inventory.
23 December 2019
If you are maintain books in tally then you will enter value of closing stock manually. [Gateway of Tally > Balance Sheet > Current Assets > Closing Stock]. Since your loss is normal in processing there is no need to pass any entry because normal loss is to be absorbed by the output or cost of sales uniformly and this is to be automatically done because in every year you entered closing stock as of physical. However, If you booked stock without reconcile physical then your closing stock is overvalued that means your previous year's profit is exceeded by the loss amount of that year. In this case you may pass reconciliation entry by debiting the profit and loss account and if profit and loss account is added to capital account then debiting capital account and crediting ledger Adjustment or ReValuation of Stock account. This ledger is to be created in the purchase group. By this way your purchase will be reduced by the amount of that entry and so on the opening stock + this adjusted purchase - closing stock as physical = consumption of stock will be reconciled as per process.
22 May 2020
You can also debit the loss to trading account instead of reducing the purchases. Both have same impact but it will be much transparent and clear to understand. However have you received any amount from Insurance Claim for the loss of stock ? If yes credit such amount in PL.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
