Coal accounting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2016 coal accounting for thermal power generating company.

How to account for shortage in coal received from government regulated mines.
Is shortage is to be accounted or total cost to be divided by total qty receipt at plant for the deriving per tonne cost.

CA R SEETHARAMAN online

CA R SEETHARAMAN online

(Expert)
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20 October 2016 If the shortage is within the norms prescribed as per power tariff regulations shortage is to be added to total cost. Charge shortage exceeding norms to P&L or recover it from suppliers/transporters.

Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2016 Thank you so much Sir.