Expiry of Raw Material

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Sr. Accounts Officer
53 Points Posted on 04 June 2021
What would be the effect in account books if any raw material is expired and not fit to use. How could we nullify it.
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On 04 June 2021 at 08:03 Report
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Quick Summary
This discussion addresses the accounting treatment for expired raw materials that are no longer usable. It suggests treating such materials as scrap and accounting for them at the lower of cost or market price. The process of nullifying their value after sale is also covered.

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Student
252 Points Posted on 04 June 2021
Treated as scrap
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On 04 June 2021 at 08:17
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Chartered Accountant
24588 Points Posted on 04 June 2021
It should be treated as scrap
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On 04 June 2021 at 10:03
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CA in practice
105 Points Posted on 06 June 2021
It should be accounted at the value of cost or market price which ever is lower.after sale it can be nullified
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On 06 June 2021 at 09:55

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