Accounting traetment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2011 Dear Experts,

Plz share ur valuable opinion on the following matter:

A) What is the treatment when goods are
1)stolen from warehouse,
2)stolen/ destroyed while in transit
3)If any insurance claim is received
on such destruction / stolen.

Thnx in advance

U S Sharma

U S Sharma (Expert)
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20 May 2011 1)stolen from warehouse,

loss of stock ( theft) dr
to stock in hand

2)stolen/ destroyed while in transit

Loss of stock (theft/ damage)dr
to stock in hand ( transit)

3)If any insurance claim is received
on such destruction / stolen.

cash / bank a/c dr
to Insurence claim a/c

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2011 Sir,
Thnx for ur valuable opinion, but it would be appreciable if the treatment of vat on the above situations is highlighted as to the availability of credit of VAT input .

U S Sharma

U S Sharma (Expert)
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25 September 2011 in no case the vat credit would be available for stolen goods. as stolen goods are not vat/cst paid at the time of removal. hence vat credit should be reversed.

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