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Goods lost by theft & goods in transit

sumit (CA student) (203 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??

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5 Replies

KIRTI (SERVICE) (48 Points)
Replied 28 September 2008

Goods lost my theft can be shown in Books. But it should be genuine and you must have proof that it is lost by theft. Like FIR etc. Los by theft Dr and Cr. P & L A/c.For Goods in transit. It is like closing stock and you have to show in Closing stk

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 28 September 2008

On theft validly recorded:

Loss of stock a/c Dr

TO Stock

Goods in transit, as Ms.KIrti has said

sumit (CA student) (203 Points)
Replied 28 September 2008

what if there is no ledger for stock and only stock registers are maintained then should i show it in stock register instead of journal entry given by Mr. srinivasaraghavan

and similarly can there be a journal entry for goods in transit.

pls clarify.....i'll be really thankful.