Expired/damaged inventory

21 June 2023

what is the accounting treatment of expired/damaged inventory?

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CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 21 June 2023

Stock written off A/C Dr
To Stock A/c

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Yasaswi Gomes new (Finance ) (4477 Points)
Replied 21 June 2023

I think last time I gave you that treatment. It's taken to costing profit and loss account.

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Sanjana Mohanty (100 Points)
Replied 24 June 2023

Expired Inventory: Write off as an expense, debiting the expense account and crediting the inventory account.

Damaged Inventory: Record at net realizable value, reduce cost, and separate recovery/salvage value. Debit loss account, credit inventory account.

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