Abnormal loss in consignment

Accountancy

1- damage of inventory in transit is normal or abnormal loss 2- if fruits are perished does they are considered as normal loss or abnormal loss

Anjali S

CA Inter

★ 0

23-May-23 22:21

624

Answers (5)

They specify in ques

Sugam SM

CA Final

★ 9K+

23-May-23 22:37

Sugam SM

They specify in ques

I know that but I am asking when they are classified as an normal and when abnormal

Thread Starter

Anjali S

CA Inter

★ 0

23-May-23 22:39

You mean to say on what basis they say it is normal or abnormal.

Sugam SM

CA Final

★ 9K+

23-May-23 22:42

1- damage of inventory in transit is normal loss 2- if fruits are perished does they are considered as normal loss Meaning of normal loss and abnormal loss Normal loss is an loss which is an unavoidable loss in the ordinary course of business Like evoporation, Abnormal loss is an loss which is an avoidable loss in the ordinary course of business Like damages due to labour work, fire 🔥 suddenly in the business... And etc..

Balachandar S

CA Inter

★ 59K+

23-May-23 23:14

Every business has an average rate of normal loss. Beyond that it would be abnormal. goods like cycles lost intransit would be abnormal.

CA Suraj Lakhotia

Admin

24-May-23 11:19