Doubt in insurance claims chapter for ipcc

This query is : Resolved

satyasowmya (Querist)
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30 July 2014 Hi,
i have a doubt in insurance claims chapter
my doubt is,
while preparing memorandum trading account, why is 'goods supplied on approval and lost in the fire' added with purchases? Cant i show it as abnormal loss on the credit side of the memorandum trading account?

Guest

Guest (Expert)

30 July 2014 actually these goods are not sold, you just purchased it and they got obsolete or whatever... so its good to decrease the purchase so that proper trading profit will be reflected in books

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