Inventory

sathis (accounts executive) (311 Points)

21 May 2009

Dear All,

What entry should be pass to shortage of Inventory (stock)?

Advance Thanx,

Sathis

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5 Replies

Milan Somani (CA) (1456 Points)
Replied 21 May 2009

if its normal loss than no entry is passed, the per unit cost is adjusted(raised) by such amount.

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 21 May 2009

In case it is abnormal loss park it to P%+&L account by

P&L Dr

Inventory Cr

CA P KARTHIKA (Chartered Accountant) (715 Points)
Replied 21 May 2009

Hi Sathish,

As they say shortage of stock should be recognised in P&L a/c to the extend estimated approximately!

Sumit Jain (CA) (4760 Points)
Replied 21 May 2009

thanx milan and prakash

Anil Sankar V (CA) (1877 Points)
Replied 21 May 2009

in my view

1.loss of stock(no insurance) - p&l a/c(charge it full)

2.loss of stock(partly insured) - do not charge the insured amt. to p&la/c

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