Loss by uncontrolled crowd -a/c
Atharv Sankliya (1306 Points)
13 March 2023
how to do accounting for the damages cause by uncontrolled crowd how it is recorded?
Atharv Sankliya (1306 Points)
13 March 2023
CA Rakesh Ishi
(Working at Private Company)
(7995 Points)
Replied 13 March 2023
Accounting for damages caused by an uncontrolled crowd can be recorded in the following way:
Create an expense account: Start by creating an expense account in your accounting software to record the damages caused by the uncontrolled crowd. You can name the account "Damage Expenses" or something similar.
Record the expenses: Record all the expenses related to the damages caused by the uncontrolled crowd in the "Damage Expenses" account. This includes any repair costs, replacement costs, and any other expenses related to the damages.
Categorize the expenses: Categorize the expenses based on the type of damage caused. For example, if the damages were caused to the property, you can categorize the expenses as "Property Damage Expenses". Similarly, if there were any injuries or medical expenses incurred, you can categorize them as "Medical Expenses".
Document the damages: Make sure to keep proper documentation of the damages caused by the uncontrolled crowd. This includes pictures, invoices, receipts, and any other supporting documents.
Review the expenses: Regularly review the expenses recorded in the "Damage Expenses" account to ensure that all the expenses related to the damages caused by the uncontrolled crowd have been recorded accurately.
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