Goods damaged in Godown!!!

This query is : Resolved

Rajesh (Querist)
Follow

18 June 2010 Dear Experts,
1. Please provide me the journal entry for loss incurred on Goods damaged while in Godown in
a) Financial books
b) Inventory books

With regards,
Rajesh

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

18 June 2010 In the Financial books

Dr: Loss on damage
Cr: Stock A/c

incase Goods Insured
One more

Dr:Insurance claim receivable
Cr: Loss on damgae

Inventory books

Dr: Scrap of damaged goods
Cr: Normal Stock

Message likes : 1 times

Rajesh

Rajesh (Querist)
Follow

20 June 2010 Sir again my doubt is w.r.t. accounting Goods damaged in Godown.

While we are passing the entry
Loss on goods damaged A/c Dr.
To Stock A/c

While finalisation of the accounts we will be passing
P/L A/c Dr.
To Loss on goods damaged A/c
(Being the loss on goods damaged transfered to P& L Account.)
My Query is
1) How we will be able to close this Stock account?
Thank you for spending your valuable time on clarifying my doubts.

With regards,
Rajesh.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

20 June 2010 Even Goods damaged stock account remains same but it separate as damages stock like scrap, untill you are selling for some low rate or written off the completely from the books

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SARAVANAN PALANISAMY

GST Karimnagar state

Darshan

Krishnamohan Gangaraju

CA Bijo scaria

Subscribe Now

Goods damaged in Godown!!!

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA