can any one help me to solve these .
how we will make entries at the time finalisation of Accounts
1) if we sold material but not delivered.
2) during the purchase if goods in transit.
3) normal and abnormal loss
umashanker goenka (Finance Manager) (73 Points)
11 November 2008can any one help me to solve these .
how we will make entries at the time finalisation of Accounts
1) if we sold material but not delivered.
2) during the purchase if goods in transit.
3) normal and abnormal loss
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 11 November 2008
1) If the contract is FOR destination or FOB, no sale occurs by not delivering Sales. IF it is ex-factory, meaning the goods have to be taken by the purchaser, then entry would have taken place in the normal way, but while valuing inventory we should take care not to include them, as it belonged to others
2) Purchase Dr
To Supplier
Include the goods into inventory as goods intransit
3) Normal loss Dr.
Abnormal loss
To Goods cosumption
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