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Petrol & Diesel evaporation loss journal entry

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Venu Kappala

Accountant

50 Points Posted on 19 July 2021

What should be the journal entry for stock evaporation of Petrol & Diesel? I maintained Inventory in my Tally.Prime

Software. I'm confused... Pls help

Replies (3)

Quick Summary

This discussion addresses how to record stock evaporation for petrol and diesel in Tally Prime. It explains the need to maintain a provision for evaporation based on historical data and allocate this cost to finished goods. The recommended method involves using a stock journal, specifically a manufacturing journal, within Tally Prime, ensuring cost tracking is enabled and allocating the evaporation as scrap to the relevant finished stock item.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 19 July 2021

Please elaborate in details

yasaswi gomes

My grammar is 💯 good I

7306 Points Posted on 19 July 2021

You have to maintain a provision for evaporation based on the past experiences and allocate the cost to finished goods. in tally,

inventory vouchers->stock journal-> select manufacturing journal-> cost tracking field to 'yes'-> under co products, scrap, select the item of finished stock to allocate the scrap.