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Inventory recovered

31 October 2022

in 2020 inventory of a firm was lost and firm write off the loss but in 2021 firm has find the lost inventory so what is the accounting treatment for it

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4 Replies

Yasaswi Gomes new (Finance ) (4492 Points)
Replied 31 October 2022

Dr Pilferage account

Cr. Inventory

(Being stuff stolen by employees)

Dr. Inventory

Cr. Pilferage accoubt

(Stuff recoverd by employees)

But during this process , your ratios are bad. Make a disclosure

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Atharv Sankliya (1323 Points)
Replied 31 October 2022

Why not by profit and loss adjustment account ??

Yasaswi Gomes new (Finance ) (4492 Points)
Replied 31 October 2022

Even in AS you dont have such account called as profit and loss adjustment account. Let me tell you sonething, i love COS accounting instead of trading account. Its meaningless to make too many formats.cheers

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Yasaswi Gomes new (Finance ) (4492 Points)
Replied 01 November 2022

Nice to know that many support this view. India is dynamically shifting towards global harmony in accounting standards like many coubtries. All big companies use global standards and so can normal companies because some wrok load or cost constraints will reduce.