Treatment
This query is : Resolved
24 December 2016
What is the treatment of normal loss?
26 December 2016
Just deduct it from the stock, i.e, quantity of stock, not amount.
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26 December 2016
Sir by this closing stock will increase, but why not it separately treated like abnormal loss
26 December 2016
U can't show it as abnormal loss. Let us understand it through an example. Suppose a Fruit seller carries fruits for sale from the purchaser to the marker place. Meanwhile some fruits may loose their weight due to exposure to sunlight, result in dryness to the fruit(s). So u see that the weight of the fruits decreases, but the price will remain unchanged (the CP), and this is also unavoidable loss, which u can't stop(coz its natural). This is why that unavoidable loss can't b claimed as abnormal loss, and the amount is not deducted from the purchases or stock, but u may show the loss in the quantity.
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26 December 2016
Thank u sir for the example..
26 December 2016
U r Welcome dear..........................
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