Goods lost by theft & goods in transit

sumit (CA student) (191 Points)

27 September 2008  

Hi.....please help me with these 2 queries.

If we prepare stock registers to record receipts & issues of stock then :-

If there is any loss by theft then how should we deal with it in the books of accounts.The loss can be booked in P&L A/C but how should the stock be reduced?? Do i have to pass a journal entry for it??

And my 2nd query is if there are any goods in transit as on B/Sheet date.....then how should i deal with it??