Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Pgbp .

Sasi mcvv (73 Points)

25 September 2021

whether stock loss and cash theft are allowed as an expense under pgbp?

Reply
Follow
Share

1 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8521 Points)
Replied 26 September 2021

yes. You can show it. The loss of stock should be valued at cost and not at market price. 2. The closing stock should be valued at cost after the considering the loss i.e. the closing figure should be net of loss.

Debit loss by theft; credit cash. Debit: Profit & Loss Account, Credit: Cash in Hand or Pretty Cash. The nature of debit is considered as expense & the nature of credit is known as Asset. Expense increase & Asset Decreased.