LOSS OF MATERIAL

umashanker goenka (Finance Manager) (73 Points)

14 November 2008  

Can any one tell me solution , Journal entries, how to show in financial statement and effect on financial statement  

1 ) if Loss Due to Material Converted in Scrap.

2) If Loss Due to Process which is unrecoverable. ( by the nature of item or by the normal process of manufacturing)

3) if Loss due to Fire or Theft.

4) if Loss in Transit at the time of purchases and at the time of sales.

5) if Loss in Godown.

6) if found Physical stock is less than Book Stock.

7) what is the difference between Normal and abnormal loss and how to show in Financila Statements and effect of normal loss as well as abnormal loss on financial statement.