Accounting treatment

PASS AN ENTRY AS FOLLOWS

NORMAL WEAR & TEAR A/C DR.

TO CLOSING STOCK/ PURCHASE

hi Priyanka,

 you can account it in manufacturing voucher, and Account like consumption --> production

Then it will deduct consumption part from Stock, and add production to the stock.

hence the amount of loss of weight in the production deducted from stock it will automatically reflect in your trading account as cost of production. no need to do any additional entry

Hii 

Danish ..thanks for ur reply ..I did exactly wht u said as I worked  in acct dept earlier for a long time ..but for my own business i faced trouble at income tax assessment ..the assessment officer  is saying as I am nt charging anything seperately in my trading account ..I am concealing the cost ..i failed to make him understand the implication of  normal loss considered in cost of production ..thts why I wanted to be doubly sure abt it ..thanks again..

You have to pass JV as Tax pandit said..