Goods lost in transit gst complication and gaap procedure.
This query is : Resolved
Qadri Wajid
(Querist)
29 January 2018
Goods were sent to a business partner to the other state. Some of the goods that were shipped have been stolen say 400 and it was sent along with the invoice of total pcs say 2000 pcs.
Later we revised the bill to that vendor and have given him an invoice for 1600pcs
now please guide me what would be correct treatment as per the accounting standard and as per the tax regulation for 400pcs that were stolen in transit. how we have to deal with lost stock in GST regime and what would be the accounting entries.
The whole stock is shipped by taking a courier service who may have taken the insurance for this shipment.
We have already raised a claim of this with the transporter.
It would be your most kindness for providing some help in this matter.
Later we revised the bill to that vendor and have given him an invoice for 1600pcs
now please guide me what would be correct treatment as per the accounting standard and as per the tax regulation for 400pcs that were stolen in transit. how we have to deal with lost stock in GST regime and what would be the accounting entries.
The whole stock is shipped by taking a courier service who may have taken the insurance for this shipment.
We have already raised a claim of this with the transporter.
It would be your most kindness for providing some help in this matter.
CA Suresh Jain
(Expert)
30 January 2018
Tax invoice once issued should not be revised. Instead, you should have issued a credit note for 400 pcs. The credit note for loss in transit should have been accounted for as Loss in transit Debit to the Debtor
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