in case of goods lost in transit at the time of sale... what will be the effect and unde which head of p&l will it be shown...
yash mundra (CA) (103 Points)
10 March 2011in case of goods lost in transit at the time of sale... what will be the effect and unde which head of p&l will it be shown...
praveen
(Chartered Accountant)
(6971 Points)
Replied 10 March 2011
There will be no account debited here as per my understanding of AS2.
As you have lost goods in transit, if you have booked a sale already you would have to prepare a credit note where you will have debit the sales account and credit the party to whom you had booked a sale.
If you had not booked a sale then you will pass no entry.
Stock of your org will reduce by the extent you have lost and hence, automatically when you are valuing your inventory the loss will have its effect
Prakash T c
(Executive)
(194 Points)
Replied 11 March 2011
if any sale of goods lost in transit, please check the below points.
1. Transport insurance.
2. any Agreement with Transporter for loss/damage of goods.
3. If insurance made by company, get certificate of fact from the transporter to claim insurance.
4. if insurance made by transporter then debit the transporter and give credit to the purchaser.
5. the sale made have the inpact of stock status. cannot be changed. for the purpose of loss in transit.
6. if all above is not applicable then pass a credit note and give credit to the party.
Ashima Aggarwal
(CA Final Student Articled Assistant)
(809 Points)
Replied 11 March 2011
Lost in transit need to adjusted to the extent of the insurance claim.what ever goods value and insurance claim balance need to write off in p& l account
Manish Garg
(Owner)
(22 Points)
Replied 21 March 2016
But what to do incase of goods purchased against C form, lost in transit upto certain extent. And we have to issue C form to selling dealer. We have recd insurance claim for lost goods in Transsit.
What will be the amount of C form full or net of lost quantity ?
kuldeep kumar
(executive accounts)
(22 Points)
Replied 01 August 2019
Dear Sir,
if credit note issue the party then stock automatically increase again......but stock already lost in transit
in my way if sale booked below entries books
1 abc company a/c dr- at the time sale
To sale a/c
2 loss in transit a/c dr at the time stock lost ( because stock not retrun in seller company )
to abc company a/c
sir, please reply if entries wrong or true...
CAclubindia
