Loss of stock

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vivek (Querist)
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20 December 2011 1)loss of stock by fire- Rs.500
2)Stock covered by an insurance policy- Rs. 800
3) Claim admitted -Rs. 210

please give journal entry of the above query.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 December 2011 Only invetory valuation would reduce but there would not be any journal entry in this case.

Further in case of tally where inventory accounting is maintained then pass inventory voucher.

vivek

vivek (Querist)
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20 December 2011 but is it fare without providing any effect we reduce invetory. how is it possible

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vivek

vivek (Querist)
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20 December 2011 but is it fare without providing any effect we reduce invetory. how is it possible

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 December 2011 Since your inventory valuation will come down and so there would be a loss.

vivek

vivek (Querist)
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