Loss on sales return
This query is : Resolved
pooja shah
(Querist)
08 October 2012
the goods are specifically made for export and and it is sold to the party but afterwards the party returns the good . It's not possible to sell the same. What will be the loss entry and what will be it's valuation ? for eg....the cost is 90 and i sell for 100? then?
CA Kishore Tallam
(Expert)
09 October 2012
Assume that the cost of such goods is Rs. 75, the following entries are passed:
At the time of sale:
Debtor / Cash / Bank A/c Dr Rs. 100
To Sales A/c Rs. 100
COGS A/c Dr Rs. 75
To Stock A/c Rs. 75
At the time of return of goods, the above entry is reversed.
Assuming that such goods will not fetch any value now, then
Provision for stock A/c Dr
To Stock A/c
At the time of sale:
Debtor / Cash / Bank A/c Dr Rs. 100
To Sales A/c Rs. 100
COGS A/c Dr Rs. 75
To Stock A/c Rs. 75
At the time of return of goods, the above entry is reversed.
Assuming that such goods will not fetch any value now, then
Provision for stock A/c Dr
To Stock A/c
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