Entry of damaged finished goods and scrap of packing materia

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2016 I HAVE SOME CONFUSION ABOUT ABOVE SUBJECT SO PLEASE HELP ME AND TELL ME ACCOUNTING ENTRY,

CA Ashish Joshi

CA Ashish Joshi (Expert)
Follow

07 June 2016 As your query is not clear, I think you want to incorporate the closing stock in your books of accounts.
An answer for that : The closing stock is just a valuation. It will be reflected in both Trading A/c + BxS. On the contrary, if your software does not support such automatic reflection feature at these places, you have to pass following entry at the end of the year
Scrap Stock a/c (BxS) Dr.
To Scrap Stock a/c (Trading a/c)

Further, you have to reverse the entry when new valuation is done in future.