Accounting treatment of damaged inventory
Atharv Sankliya (1359 Points)
19 May 2023
what is the accounting treatment of damaged & spoiled inventory
6 Replies
NARENDRA
(ACCOUNTS MANAGER)
(2181 Points)
Replied 19 May 2023
You can do it through inventory vouchers ....... .......if it is happening while production , you can show the damaged or spoil items on the consume side ..........
Yasaswi Gomes new
(Finance )
(4545 Points)
Replied 19 May 2023
Write off all damaged goods. Damaged and Spoilage has a formula and cannot create a provision for it as its a future operating loss.
Yasaswi Gomes new
(Finance )
(4545 Points)
Replied 19 May 2023
Lucily i have my cost and management accountancy book by Drury
Spoilage is damage and it could be sold off as scrap or maybe debited to job card
Maybe charged to factory overheads allocating loss on other products
Abnormal Loss which can be controlled must be taken to costing p&l
Normal spoilage or damage is charged to product cost.
Yasaswi Gomes new
(Finance )
(4545 Points)
Replied 19 May 2023
I think some of new answers are not coming into my new list. Donno why the it is so manipulative.
Atharv Sankliya
(1359 Points)
Replied 19 May 2023
If a doctor received free service from CA does it is recorded in the books of account of doctor as a gain/gift or any other benefits/income??
Yasaswi Gomes new
(Finance )
(4545 Points)
Replied 24 July 2023
No need to mention anything. Not unless the ca is a related party and holds significant control over the doctor business.
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