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?
4 Replies
intermediate(ipc)course
(no)
(1460 Points)
Replied 18 April 2012
50 radio sets @ 900/- --------------------------------------------------45000/-
add: consignor expenses (10900/1000*50)--------------------------545/-
--------------------------------
45545/-
----------------------------------
Note: insurance claim admitted no entry is made.
Tejaswi Kasturi
(student-cpt)
(427 Points)
Replied 22 April 2012
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
Y.RAMA KRISHNA
(EXECUTIVE ACCOUNTS)
(45 Points)
Replied 23 April 2012
Repairs is not a non recurring expenses. So you should not take up Rs.2,500/- consignee expenses while calculating unsold stock valuation .
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