Inventory

if its normal loss than no entry is passed, the per unit cost is adjusted(raised) by such amount.

In case it is abnormal loss park it to P%+&L account by

P&L Dr

Inventory Cr

Hi Sathish,

As they say shortage of stock should be recognised in P&L a/c to the extend estimated approximately!

thanx milan and prakash

in my view

1.loss of stock(no insurance) - p&l a/c(charge it full)

2.loss of stock(partly insured) - do not charge the insured amt. to p&la/c