Loss by Fire

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This discussion addresses the correct accounting treatment in Tally for goods damaged by fire. It clarifies the journal entry for 'Loss by Fire', including Purchase and IGST Input accounts. The advice also covers how to accurately reflect the destroyed quantity in Tally's inventory and provides guidance on improving Gross Profit when it appears negative due to such losses.

Surinder

Surinder (Querist)

05 March 2020
Dear Sir
Goods damage due to fire. i have made the below entry in books ( tally)
Loss by Fire 16230/-
Purchase a/c 14440/- Cr.
IGST Input 1790/- Cr.
Please advise it is right method or wrong also please suggest how to reduce stock item wise in tally

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

08 March 2020 Yes. The Quantity which has been destroyed in fire has to be entered while passing the JV. This will be done when you have selected "with Inventory" option in Tally.

Surinder

Surinder (Querist)

09 March 2020 Thank you very much Sir,,

Surinder

Surinder (Querist)

14 March 2020 Sir,
Please suggest as per above entry GP Shows negative value how to increase Gross profit

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