A person conducts business of cell phone but unfortunately some cell phone is damage and are not able to sales. He recorded this loss in books of account through this below general entry of loss amount. Cost of sales account (Dr.) Inventory account (Cr.) Is the above entry correct or not? If not then tell how will you record this loss?

Salah

• Aug 26th, 2016

If the damage is immaterial, the JV is right but if it is material then you must raise another JV.

Answer Question  Select Best Answer