1,000 radio sets were sent on consignment eah of which is 900/- charges by consignor are 10,900 towards freight and insurance. 50 radio sets were damaged in transit. insurance claim to 35,000 was admitted. consignee spent 10,500 for carriage and sold 750 radio sets for 9,00,000. consignee spent 2500/- to repair the damaged radio sets. Now how should we value the damaged radio sets when claculating closing stock?
50 radio sets @ 900/- --------------------------------------------------45000/-
add: consignor expenses (10900/1000*50)--------------------------545/-
--------------------------------
45545/-
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Note: insurance claim admitted no entry is made.
n what be closing stock in it??
my original question was whether repairs of 2500/- should be considered as non recuring expenses and added to closing stock or should be considered as selling expenses?
closing stock valuation:(if repairs are considered as selling expenses)
200*900+(10,900)*200/1000+(10500)*200/950 =184390.53
Repairs is not a non recurring expenses. So you should not take up Rs.2,500/- consignee expenses while calculating unsold stock valuation .
T R SOOD & CO
New Delhi
CA Inter
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