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 ..........
Write off all damaged goods. Damaged and Spoilage has a formula and cannot create a provision for it as its a future operating loss.
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.
I think some of new answers are not coming into my new list. Donno why the it is so manipulative.
No need to mention anything. Not unless the ca is a related party and holds significant control over the doctor business.
CAclubindia
