hello friends i have a query
one of my clients sells vegetables in wholesale
after one month they make payment for same .
if its 500000 sale the purchase says due to low quality/ damages in transportation we will be paying only 4.50laks etc etc .
now how to show the same for accounting purpose ?
we cant treat as sales return as goods are not actually returned , only sales amount is reduced .
can we show as normal losses due to perishable items ?or
show it as cash discounts at the time of payment ?
please help
gou should create a ledger named " loss due to damage" debit that ledger and credit party ledger for ra 50000 in your case. this should be treated as abnormal loss .
You are dealing in perishable goods. Firstly you identify what type amount of loss occur in regular basis and you can avoided or not. If avoided then abnormal loss if no then normal loss. You are right it can not treat as sales return..
CAclubindia
