Accouting entries for the goods value calculated as nil

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Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2013 please tell me the accounting entries for the goods valued as nil.
and their accounting adjustments..

CA Vijeta Verma

CA Vijeta Verma (Expert)
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05 October 2013 Dr P &l ,cr finished goods/inventory a/c with the value recorded for the goods

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2013 mam if u can please explain this.....
if i recorded all the goods as units in tally ....
such as(Tv a/c dr...80 units 5000 p.u 400000
to creditor a/c 400000)
n now it's value is nil.
so how can i do that whatever u wrote as answer.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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06 October 2013 please mention the reason for Nil value

CA Vijeta Verma

CA Vijeta Verma (Expert)
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06 October 2013 generally finsihed products are discarded when obsolete/destroyed.But even in this case you should realise something as scrap value which may well be a nominal amount.
But as you said that you are discarding all goods at nil value,then it should be a revenue loss to be written off in p&l and accordingly your inventory value will be decreased.Lets wait for other experts opinion on the same

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2013 thnks mam but still a doubt....

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