Accounting treatment for expired medicines

it should be like:-

Loss by expiry             Dr.

                    To Purchases of consumables

hope you got your answer

 

 

 

 

Hi alka, I want to ask you one question. May I know how we recognise waste materia as on the balance sheet date. As per AS 2 , inventories are those assets which are held for sale in the open market. Now I will come to your point. Can we recognise expired medicine as inventory. Basically it is classified as inventory as it can be sold in the market. However market value of such expired medicine is nil. So when we apply rule of measuring inventory at lower of cost or NRV as discussed in AS2 , we come to know that NRV of such expired medicine is near to zero except there may be some alternative option available. So we need to write off inventory balance by the amount of value of such expired medicine by debiting profit & loss account. I hope you will be clear. Any doubts are most appreciated. I will be happy to resolve your doubts Rgds Viral Patel 9033485216