Entry for obsolete inventory

CA Karan Lodhi (CA and B.com(hons.)) (879 Points)

29 March 2013  

Dear All,

 

Please share your valuable knowledge regarding the following case :

 

Inventory of some past years from 2005-2012 have become obsolete and now we want to wrte off the said stock from our books.No insurance is taken at all and it will be sent back to US head office.The loss is of abnormal nature.please give me journal entries at the earliest.