Loss in transit

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Deepak Gagrani (Querist)
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02 February 2009 Dear all

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 ,

ple give reply

thanks

Deepak Agrawal

Deepak Agrawal (Expert)
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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...