During the audit of a rice's purchaser and seller i found that the is a large amount of normal loss due to some reasons but our client does not considered it for inventory valuation purpose in tally which results in inflating their closing stock.
So please suggest m that what should be the entry to nullify the impact of normal loss in closing stock.
For e.g I purchased 100qtl rice from party @ 45/qtl but actually i received only 99qtl. 1 Qtl may be treated as normal loss and we are also showing 100qtl in Closing stock.
Thanx in advance
CAclubindia
