My grammar is 💯 good I
7296 Points
Joined March 2019
You can allocate the loss on all other shirts and report no loss, or
By Debtors a/c 40,000
Sales a/c 40,000
Sometimes you can get tax relief on distributing sample goods I guess. Then finished inventory must be reduced from trading account.
By Distribution expenses a/c
To Inventory a/c
Here what ever method is used: Cost or NRV for 50 T-shirts