Prakhar (BUSINESSMAN) (149 Points)
05 April 2021I am medicine wholesale ,
I received some expired medicines from retailer ,which I can not return to company due to some conditions .
How do I show this in my loss account ?
I am using MARG ERP software and when I am trying remove the same from SCRAP store using BRK/EXPIRY issue it gets added to B2C in GSTR1 outward sale .
What is the correct entries to do such that it is shown in loss only as this is non saleable goods which I cant return back to company .
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 05 April 2021
You don’t have customer options, that’s not an issue with revenue recognition. Loss should be debited and check disclosures. Your not an agent because risks and rewards were transferred to you. Scrap is not the criteria for this situation. Your not a consignee as well and you own the profits.
On the whole, just recognise a loss. Your ERP business is yours and transfer the loss accordingly.
CAclubindia
